Stop vs Stop Limit Order Types When Trading Stocks
Summary
Sasha Evdakov explains the critical differences between standard stop orders and stop-limit orders for stock trading. He highlights that while stop orders guarantee execution at market price, stop-limit orders offer price control but risk non-execution during rapid market moves. The episode uses a simulated Apple stock trade to demonstrate how these triggers function and advises traders on setting appropriate price cushions to ensure their positions are closed effectively.
Topics discussed
Introduction: Stop vs. Stop Limit Orders
Explaining standard stop orders with market execution
Stop limit orders: setting price floors and risks
Demonstrating stop order triggers and liquidity issues
Conclusion and resources for further training
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