Order Types: Market, Limits and Stops
The six order types on the platform and exactly when to use each.
Written and reviewed by the Fundezy team · how we produce this
An order is an instruction. The Fundezy simulator supports the six core order types used across professional trading platforms, and choosing between them is strategy — a market order says "get me in now", a pending order says "get me in only if the market comes to my level".
Market orders: BUY and SELL
A market order executes immediately at the current price. Use it when being in the trade right now matters more than getting the exact price — for example, your setup is already confirmed and you accept the current quote.
Market orders are where beginners over-trade: every glance at the screen can become an entry. Force yourself to write the trade plan before clicking.
Pending orders
Pending orders wait for a trigger price you specify:
| Order | Placed | Fills when price… | Typical use |
|---|---|---|---|
| BUY LIMIT | below current price | falls down to it | Buy a dip into support |
| SELL LIMIT | above current price | rises up to it | Sell a rally into resistance |
| BUY STOP | above current price | breaks up through it | Buy a breakout |
| SELL STOP | below current price | breaks down through it | Sell a breakdown |
The memory hook: limit = better price expected (you demand an improvement), stop = momentum expected (you pay up to join a move that has already started).
Limits and stops in one picture
Say EUR/USD trades at 1.0900 and you believe 1.0850 is strong support:
- Confident it will hold and reverse → BUY LIMIT at 1.0850 (buy the dip).
- Want proof that buyers have stepped in → BUY STOP at 1.0930 (buy the confirmation, accepting a worse price).
Neither is "correct" — limits get better prices but lower win-rates; stops get worse prices but higher win-rates. Your backtesting results (Course 06) will tell you which suits a given strategy.
Managing open positions
Every order on this platform — market or pending — can carry a stop loss and take profit attached at entry time. Setting them when you place the order, not after, removes the temptation to "give it room" once emotions are engaged. The next two courses build heavily on this habit.
By the numbers
This platform supports six core order types — market buy and sell, plus four pending orders (limit and stop in each direction) — with a stop-loss and take-profit attachable to every one at entry. History shows why pre-placed orders matter: in the May 2010 US "flash crash" the Dow fell about 9% intraday and regained most of it within half an hour, while cascading market and stop orders briefly overwhelmed the book (SEC/CFTC joint report, 2010).
Practice in the simulator
Place one market order and one pending order — apply what you just read with simulated money.
Check your understanding
4 questions · answer all, then submit.