Orders and Execution · Futures Trading Guide
Order instructions decide which tradeoffs you accept between price and execution. A protective order is only useful when its actual behaviour is understood.
Choose the constraint that matters
A market instruction prioritises execution against available liquidity, while a limit order sets the worst acceptable price. Neither guarantees the exact result visible on a prior quote. Exchanges can implement market orders with price protection or other controls. Confirm how the broker maps its ticket label to the venue’s actual order type.
Treat a stop as a trigger
A stop is activated by a defined condition. What happens next depends on the order. A stop that becomes a market instruction can fill beyond the trigger. A stop limit becomes a limit order and can remain unfilled. Trigger rules can depend on trades or quotes and on session settings. A stop is not insurance against a gap or a market that cannot trade.
Walk through an adverse gap
Suppose a fictional long position has a sell stop at 100 and a stop limit price of 99.50. Trading jumps from 101 to 98. The triggered sell limit cannot execute below 99.50 and may remain open while losses grow. A market style stop might obtain an available lower price, subject to protection rules, but its cash loss is uncertain. Choosing between them requires an explicit plan for both outcomes.
Check the complete order lifecycle
Record quantity, maturity, direction, time in force and session eligibility. A partially filled entry needs an exit quantity that matches the actual position. Confirm whether linked orders cancel each other reliably and what happens after disconnects. After an exit, check positions and outstanding orders directly. An old buy order can reopen a position after the intended trade has ended.
Try it yourself
A buy limit is placed at 250. The lowest available offer remains 251. Is the order guaranteed to fill because the market is close?
Show the worked answer
No. It cannot buy above 250 under its limit instruction and may never fill. A limit controls acceptable price rather than guaranteeing execution.
Further reading
Educational material. Prices, margins and strategy examples are hypothetical unless explicitly identified as contract specifications. They are not trade recommendations. Futures losses can exceed deposited collateral. Product terms and eligibility vary by venue and jurisdiction.
