What you will learn
- Market orders
- Limit orders
- Stop triggers
- Modification and cancellation
Market orders
A market order prioritizes execution under the venue's rules, not a guaranteed price. It may fill across several prices. The quoted price seen before submission can differ from the fill because the market and available quantity change.
Limit orders
A limit order specifies a price constraint but may not fill. A touched chart price does not establish that the order reached the front of the queue or that sufficient executable quantity existed at the appropriate side.
Stop triggers
A stop typically activates another order when a defined trigger condition occurs. Trigger source and resulting order type depend on the venue or provider. Distinguish a stop trigger from a guaranteed exit and inspect the applicable rules.
Modification and cancellation
Time-in-force controls how long an order remains eligible. Cancellation and replacement are requests with acknowledgements, not instantaneous assumptions. Until a cancellation is confirmed, the original order may still execute.
Worked example
A limit order is submitted, then a cancel request is sent. An execution arrives before the cancel acknowledgement. The position exists and must be reconciled; the intention to cancel does not erase a valid intervening fill.
Try it yourself
Draw the possible states for submitted, acknowledged, partially filled, filled, cancel requested and cancelled. Include a fill arriving while cancellation is pending.
Show the worked solution
Submission can lead to rejection or acknowledgement. An acknowledged order can partially or fully fill. A cancel request can end the remaining quantity only when confirmed; fills may arrive during the pending interval and must update the position.
Apply this to your course project
Record market, limit and stop-order exercises with cancelled and rejected examples.
Keep the calculation inputs, assumptions and decisions with your work. Practical exercises are self-reviewed; the scored knowledge checks assess the questions shown, not an independent certification of practical competence.