Day Trading Order Types Tutorial Video

Do you know the differences among the various order types commonly used in day trading? Do you know when it’s better to use a stop limit order as compared to a market order? Don’t worry – many traders don’t know the differences. Good news – we have a video for you that explains all of the common order types and when to use them. You may find that MIT orders, for example, reduce risk based on your style of trading.

Depending on your trading platform, most if not all of these order types should be available. Choose what works best whether buying or selling. If you’re one of those traders who are content just placing plain old market orders, you can definitely learn a few tricks from this video.

We place orders using the NinjaTrader SuperDOM. You could use ChartTrader, but our opinion is that it limits features. The SuperDOM represents a number of prices. The current price appears in yellow. You’ll see the buyers and sellers for each price providing your data feed provides something called Level 2 market data. The market should seek a balance among buyers and sellers.

Sometimes, you’ll want to enter a trade (aka place an order) a certain price “or better.” The “or better” means a more favorable price. If your selling the market, or “going short,” your trading indicator or strategy may advise getting into a position when price reaches a specific value. Using the right order type along with an ATM Strategy is a great way to make trading happen seamlessly. In case you don’t know, an ATM Strategy is simply a preconfigured stop loss and profit target. Yes, more stuff can be configured, but we generally create a few of these to switch between in the heat of the moment (when a signal has just fired off the Atlas Line, Trade Scalper, etc.).