One subject
Stops and exits
13 lessons, 16 glossary terms and 2 market guides cover this across the academy. Each one links to its own page, and nothing is repeated here.
Trading involves risk. You could lose more than your deposit.
The curriculum
13 lessons cover this.
In curriculum order, which is the order you would meet them.
- What a stop order isModule 02The trade ticket7 min
- What a take profit order isModule 02The trade ticket6 min
- What a one cancels the other order isModule 02The trade ticket6 min
- How a position is modified and closedModule 02The trade ticket6 min
- What your orders do not protect you fromModule 02The trade ticket8 min
- What ATR isModule 07Reading the chart7 min
- How position size follows from stop distanceModule 09Risk, plan and practice10 min
- What reward to risk describesModule 09Risk, plan and practice8 min
- Where a stop sits on the chartModule 09Risk, plan and practice13 min
- Volatility based stop placementModule 09Risk, plan and practice11 min
- Why stops get hitModule 09Risk, plan and practice8 min
- Standard stops and guaranteed stopsModule 09Risk, plan and practice7 min
- How scaling out of a position worksModule 09Risk, plan and practice8 min
The glossary
16 terms belong here.
Alphabetical, each defined in one sentence on its own page.
- Bracket orderA bracket order is a pair of resting instructions attached to one position, one above the market and one below it, arranged so that whichever deals first cancels the other.
- Buy stop orderAn instruction to open a long position once price rises to a stated level, which rests above the current market and converts into a market order the moment the level trades.
- Closing a positionClosing a position means entering the equal and opposite contract in the same instrument with the same firm, so the two net to nothing and the difference between the prices is realised.
- GappingGapping describes a market moving from one price to another with no trading in between, so an order resting in the skipped range fills at the next available price instead.
- Guaranteed stopGuaranteed stop is an industry term for a stop the offering broker undertakes to fill at exactly the stated level, including through a gap, usually for a premium.
- One cancels the other (OCO)A one cancels the other pair links two working orders so that the moment one of them executes, the other is withdrawn automatically and can no longer fill.
- Parabolic SARParabolic SAR prints a trail of dots that follows a directional move and tightens towards price each period, jumping to the other side of the chart once price crosses it.
- Sell stop orderAn instruction that becomes an order to sell at the market once price trades down to a stated level, which rests below the current market and prioritises execution over price.
- Stop distanceStop distance is the gap between the entry price and the level at which a position is set to close against itself, measured in the instrument's own increment rather than in money.
- Stop limit orderA stop limit order submits a limit order once a trigger price is reached, combining the trigger of a stop with the price control of a limit, which means it can go unfilled altogether.
- Stop loss orderA stop loss order rests at a level away from the market and becomes an instruction to close the position once that level is reached, so the loss is capped at the fill obtained rather than at the level itself.
- Take profit orderA take profit order closes an open position once the market reaches a stated level in its favour, and being a limit order it fills at that level or better, never worse.
- Trailing stopA trailing stop follows the market at a set distance while a position moves in its favour and holds still when the market turns back, so its level ratchets one way only.
- Trigger priceA trigger price is the level at which a resting instruction becomes active, and on a stop order it is the only price the order specifies, because everything after the trigger belongs to the market.
- WhipsawA whipsaw is a sharp move that reverses almost immediately, so an entry taken on the first leg is undone by the second and stops can be triggered on both sides in quick succession.
- Working orderA working order is an instruction the broker has accepted and is holding live, waiting for its price or condition to be met, as distinct from one already filled or not yet placed.
The market guides
2 guides answer a question about it.
Standalone reference answers, entered laterally rather than worked through.
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