hey tribe Sean here welcome to the brand new series investing 101 and in this video I'll be talking about 10 different order types I decided to go and create a series of beginners guides because I want to bring you into the stock market safely and I realize something if you don't understand what is market order stop order limit order you are going into the stock market at a disadvantage and I realized this recently because in our telegram group I've been posting my trades and this Baba trade where I actually a trailing stop loss gain us about 100% And when I posted this I realized many Tri members were asking what is a trailing stop loss and just a few posts before that I was posting about this uh breakout strategy where I use a buy stop strategy a buy sell strategy and that's where we make about $ 1,700 over dollars now a lot of tribe members also start to ask what is a buy stop what's a buy sell and I realized that a lot of tribe members do not understand the fundamentals and the beginners portion of how to invest so oh by the way if you are not in our telegram group yet I'll be posting the link at the description please join us it is a free group where we share ideas and share real life trades with real cash now back to the 10 order types whichever brokerage you use when you go into a particular brokerage whether it's ibkr whether is it sexo whether is it tasty trade let me just show you this example this is tasty trade when you want to buy or sell option stock there will be a aut type you can see limit Market stock market stop limit even in IBK is the same example when you want to buy this particular stock see there are various other types and in even sexo okay so every brokerage will have different order types or rather different choices order types but the order types are typically the same so let me go through the 10 important ones uh that you typically find in most brokerages and you will see how to use each of them extremely important by the way also comment below whether all this fundamental videos for beginners guide is useful and what other questions you would like to ask so let's go through the 10 order types order type number one order type number one is market now what is the market the description is here is an order to buy and sell immediately that's a keyword so you are not really concerned about bargaining the price you want to buy and sell right now it guarantees execution but it doesn't guarantee the price so let me show you this uh instead of reading through the example let's look at this example spy is 5 68.2 right now the market is closed as I did this video but I can share with you that when you see this particular price 5 68.2 it means that it's the last transactor price now the stock market works like this there's ass price and there's beat price you can see it's jumping a little bit okay but when the market is open you'll start to move it's like you're going onto your Caro cell or Ebay it's like an auction so there are people who wants to buy and people who wants to sell and those who have stocks and they want to sell they want to sell they're asking for a higher price you can see here 567.com okay 94 so you can see it is higher than the big price because when you sell something you want to sell at a higher price and the buyers they want to buy at a lower price so they are bargaining now when you execute a market order example you can see right here Order type when I put a market order it means just and if I want to buy it means that just give me any price so if I'm buying okay 100 of a spy shares ETF when I buy very likely I'm going to get the ask price because they are selling in the market who already Keen the order saying that I want to sell you these shares at 56789 or 87 so when I execute and I send in the order okay example if I click buy now likely I will get the ask price now it's not guaranteed that I'll get ask price I may get any price I may even get 569 570 okay it is possible because you are just the system will match you with anyone who is selling it so let's say there's a crazy guy out there uh selling $700 they may randomly match you with the person okay it's unlikely but uh it may happen I'm saying the possibility is there so this is market price so you can see if you want to execute it immediately okay you just choose market price so here's an example if it's trading at 50 you want to immediately you place the market order they will get you what available price there is out there it may be slightly higher slightly lower we we don't know about the price okay when do we use it for immediate execution and we are less concerned about the price most of the beginners I suggest you do not use market price for buying or selling of shares if you're entering the order okay let me share with you the other orders and you'll see your choices so this is Market order now order number two limit order limit order it is a you can see the description is an order to buy or sell at a specific or better price so for a buy limit order you will only execute at a limit price or lower okay so let's go to the example so example spy now it's 56 8.02 typically when we want to buy a share we want to buy it lower so if I set a limit order okay look at here if I set a limit order like here now notice the difference initially when I put the market order there isn't much choices for me to like input I just click Market order give me whatever price you have and I click Buy and they will execute but when I click limit order they will say okay what is the limit price that you want now when we talk about limit price you are telling people that I will not pay anything higher than the price if I'm buying because why when you want to buy you don't to pay anything you don't pay too high so example this is 568 if I put 56 Z okay just just for example you can see if I put a 560 and I limit the price to 560 to buy the shares buy 100 shares what it means is unless I can buy 100 shares at 560 do not help me execute this trade I only want to execute 5 60 and below and if let's say you're lucky uh okay shouldn't say lucky but let's say based on your analysis the price really goes down it may go down to let's say 550 540 if it goes down lower you may get it cheaper than 560 but you will not buy anything above 560 this is called limit order so inversely if you actually talk about uh selling if you want to short a stock you want to sell a stock when you when you sell a stock you see let's say I want to sell a stock for some reason you want to sh the shares if you don't understand why shorting a shares and you're very new to this don't short the shares okay so this is uh 568 okay when you want to sell sell a share you want to sell as high as possible so you can put something like 570 okay 570 now it's 568 okay I will only sell the shares when it hit 570 and then it goes down okay got it so it goes down it's your own analysis but basically you will not sell the shares unless you get a price of 570 if I don't collect 570 don't sell my shares okay in case you have a share you can actually sell it at a higher price than market right now okay so I saying minimum I'm going to get 570 otherwise I'm not going to sell my shares now if this is not very intuitive to you go back to buy think about buying first buying you always want to bargain at the lower price so when you put a limit you will never pay a price higher than the limit price that you set this is what you set on it okay so this is the whole idea of limit price so example typically now it's 568 and you want to get it at 567 cheaper you'll put a limit price 567 and the system will run for you the whole entire day and if they manage to match you with someone 567 they will actually uh Execute order otherwise it will not happen so you can see example you want to buy a stock at 50 you okay the stock is now at 50 you want to buy it when it's 48 you can put a limit price it will never buy above 48 okay so this is bargaining you're telling your broker buy for me when it hits 48 okay it will never execute higher than 48 now this is when you use it to bargain for lower price and this is very typical so for beginners uh remember this is the one that I would suggest you use a limit price but you shouldn't put like let's say for example now it's 568 you going and put a $300 that's not realistic right but who knows who knows okay you can put 300 and remember okay we'll talk about the rest in a moment's time well maybe one day it hits 300 you get it okay got it so this is limit order the next one I want to talk about is mid price so what is mid price read here a mid price orders execute at the mid price between current bid and us okay this pretty interesting and not many other brokerages have this but ibkr has this now again here if you want to buy SP y you can see that they are bargaining right now 56 7.91 56 7.83 so it's like a 83 cents and 91 cents about 10 cents difference and you say I want to get the best price quickly okay so instead of putting market price where you get it immediately okay IBK has a function called mid price okay you can see mid price uh oops so you can see mid price but they will also ask you to put a price cap price SC means okay uh I'm not going to pay anything above that price so for example you put 570 I'm not going to pay anything higher than 570 and I want the mid price so they will help you try to execute it as fast as possible between the bid and ask price likely you're going to get 567 point maybe 90 okay somewhere around the middle that's what we call the mid price so this is how it goes okay so you can see that if the bid is 49 the ass is 51 the mid order aim aim to execute at 50 because why do we say aim and not guaranteed because the price is constantly moving so you can see right now even when the market closes moving okay there a a postmarket pre-market activity but it's not going to change but you see this is how it goes so you aim to get a fast execution but it's better than market price so you see with this particular input of a mid price there's very little reason to use a market price but again not every brokerage have a mid price function so this is a unique to ibkr uh let me know in the comments below if any other brokerages have a mid price function as well so these are three a types again for beginners focus on limit price okay use limit when you enter a particular trade now let's go through the next few order types the next one is a stop sell this description you can see is an order that becomes a market order once a specific price is reached what are you talking about now it's very simple and this one typically you use it when you already have the stock so for example I already have this stock example I bought spy say well in fact I really do have this stock uh so disclaimer this not a recommendation to buy or sell just sharing information example let's say I managed to buy this stock at 400 and let's say 425 so after I buy the stock it went up up up and well pretty good profits right 400 plus now it's 500 plus however I'm also concerned maybe election is coming maybe I heard that recession is coming I'm worried and I see that well I want to actually put a stop stop meaning to say if it drops I want to sell this off okay want to sell this off so now you can see that spy see I do have some positions here so if it if it drops and you you're actually contemplating oh now it's 567 if it drops below 560 I want to sell the stocks okay because maybe it's going to go downtrend so this is what a lot of people call a stop loss so this is a stop order so when you enter a stop order how do you do that you come to this particular uh again order ticket and Depends your brokerage may look a bit different and the order type you choose stop when you choose stop you can choose the number of shares again and then you put what is the stock price so for example this is 567 if I put 560 what is okay and in this case I should put a sell correct sell stop for sell stop 560 okay what is happening is I'm telling the system if I uh send this in I'm telling the system uh help me sell these shares if the price drops to 560 and below so if the price hits 560 okay it will trigger this order trigger means this order will turn alive and say okay now it's time to sell and how will they sell they will help me try to sell it at market price so once it hit 560 it will immediately try to help me to sell but if the price is falling too fast it may help me sell off at five let's say 559 or 558 okay it may it's likely to be below 560 if let's say is extremely liquid so the market is not falling a is bouncing up and down bouncing up and down and it hits it triggers hits 560 okay now 567 566 565 580 it goes up and down it triggers to 560 and when they try to sell it you may exactly sell it at 560 or even higher so remember market price okay it goes back to market price when it triggers market price sells at any price got it so this is what the stop order does uh in fact for stop losses I will recommend or I would suggest putting uh sell stop that's it okay so sell stop means once you hit that price get it get out at any price I want to I I just get out okay so you can see uh this is the example if you own a stock that's currently at $100 you want to sell it if it falls to 95 you place a sell stop at 95 and if the stock market reaches 95 the stop order becomes a market order and it's executed it becomes a market order and try to sell away the stock at any price they can get okay because sometimes it's falling really fast you do not want to bargain so this a sell stop order now uh before I go to the next order I want to show something okay because for example you can immediately put two orders together as a combination uh so example if you want to buy spy right now so I want to buy spy and now is 58 6.20 I think this will be useful for beginners for example you say that I want to put a limit order remember limit order is I want to pay for this stock but maximum I'm willing to pay is this price do not buy anything higher than this price in fact on the bargain now it's 5 68.2 let me try to bargain 20 cents I want to buy it at 568 okay so you can see it's a limit order so the next thing I may want to do is I may immediately attach a stop order a stop loss now a stop order means again if the price drops okay to a particular level okay so this 568 if it hits 568 you will help me to buy but in case after it hits 568 the price continues to drop to say 560 wow okay I want this particular brokerage to help me sell it off so I can buy it at 568 immediately I can sell it all at 560 when it goes down okay this is called a stop order you can you can enforce this okay enforce this so something I want to share right now is also the time the time so you can see the time there's day that's good to cancel there's overnight I'm just going to talk about day and good de cancer now Day means I'm going to put this order in to bargain for me at 568 and let's say Vin today okay today means when the Market opens and after that it close one day is gone this order will disappear so if let's say it does not hit 568 okay it is at 568 point2 5 68.3 Hoovers around it didn't manage to help me buy a 568 this order will disappear so it will not try to help me to buy the next day so uh what happens is I have to come in and then ke the order again however if I put good to cancer if today they are not able to help me get it at five 68 tomorrow they will try again the next day they will try again until two things happen until they help me get the to buy the stock at 568 or I come in and cancel so it's good deal cancel good deal I come in and cancel the order otherwise uh when they help me execute then the order is fulfilled got it and when they fulfill one time this order means it's done it will not like multiple times time to buy 568 okay it will not do that okay so it's only 100 stocks 568 good to cancel so once I actually do that see similarly for stop loss so if I manage to buy a 568 okay great I want to ride as high as possible okay and I'm concerned that if one day due to election due to anything the stock price drop I may put a stop loss at 560 and same thing time in force I can put good to cancel okay good to cancel same thing meaning you say if I manage to buy a 568 this stop loss this stop order to sell it at 56 560 if the price drop any point in time from now until the time uh the time I buy until any time it drops to 560 it will help me sell it off until I come in and cancel this order okay I can adjust it to 565 later or 570 later okay but no problem this is the place where I put a stop loss and I'm very very assured anything uh that will happen to me for this trade maximum I'll lose about $800 okay if they manage to come me toell at 560 so which is typically uh uh usually done okay unless the stock market really crash very quickly and gaps down so this is what I mean by sell stop okay or stop sell okay so you can see when you use it you use it to limit your loss or sometimes you may want to protect your gain so how do you protect your G uh like I mentioned just now if the stock price has gone up a lot from 400 plus to 500 plus and I say that I do not want it to I do not want it to actually uh drop and lose all my profits so I put I put a sell order and I put a sell stop order now it's 568 okay if it drops to 560 I want to get out of this trade uh so so this is called a sell order stop okay so it's a stop order there a sell okay so this is a sell order typically used to get out of the trade that you in to limit your loss or to protect your gains once the price is ahead so now the next particular order it's also very powerful and very important and it's also a stop order but this is a stop buy order so now let me explain to you the function the description is exactly the same this particular order will only become a market order when the price is being hit so you can see there sell stop and there sell buy and typically when do you use a sell stop or sell buy is usually a little bit counterintuitive to people but let me describe to you let's say using a spy Spy let me go for spy okay so now initially the previous stop order that we talk about is sell stop when we say sell stop whatever price the market is at right now now is 568 corre when you talk about a sell stop typically when you talk about selling you want to sell as high as possible so a stop order works the opposite way you want to sell when the price drops usually you want to sell okay so so you want to sell when the price drops okay just now we have mentioned is to protect your losses so if the price drop it triggers the sell order sell stop order and then you'll start to sell for you now if we talk about a buy stop order when do we use a buy stop order a buy stop order is is triggered when the price is higher than current price so the price now is 568 and I can put here let's say 600 I'll say that help me buy okay help me buy spy when it hit 600 you can see right here now why do you do that typically we do that for a breakout strategy so a breakout strategy means okay uh if you have been into like learning about technical analysis you know some of the strategies uh this is one example so example let's say I see that spy has been ranging forward okay let's say this particular portion has been ranging forward and this is what I can see so I see that it's ranging forward and I want to enter spy if the price breaks above this particular level okay in this case I'm going back in time is 264 so now it's bouncing bouncing bouncing and breakout strategy believes that if it breaks out of this portion I will buy and it will ride it all the way up so you can see right here if I set a buy stop order the market will be triggered the auto will be triggered and help me buy it at at any price at market price if it breaks so you can see right here it broke okay how do I see it breaks the price boom hits above 264 okay and it it breaks and when it breaks okay help me buy and you will write all the way up okay it may retrace but it goes all the way up so as it goes all the way up I can put a stop order in case it comes down help helps me get out the trade okay I I do hope that this is helping you so far let me give you an examp example on ibkr okay so right now the ibkr example is here now the current stock price is 5 6835 I can put a you can see buy order sell order now it's a buy stop order a buy stop order as I put here a buy stop okay let let me show you this now is 5 6835 if I put let's say 565 okay if I put a 565 it doesn't it doesn't make sense okay because what it means is I'm telling the particular uh system okay if it hits this price help me to buy but it's already it's already at this price and Below okay so when you say now it's 568 has already hit this price in terms of the buying s so when you do do a buy stop order it should be higher than current price so 568 you should put let's say 569 okay or 570 the higher than current market price so when the market price goes up and fers hit the price okay hit the price that we want which is 570 it will help us execute a buy order and market price so example the stock that price we want to buy is at currently 47 but I only want to buy when it crosses $50 okay again it is a breakout strategy so I I place a buy stop at 50 and once the price is being triggered it hits 50 okay we were executed when we say we The Brokerage will execute it so that's where we want to buy on the breakout okay so this is a slightly I would say Advanced strategy especially if you're very new you may not be using this particular order but it's good for you to know okay now the next order we've been talking about 5 already the sixth one is called a stop limit so let me explain to you now you can see we have been talking about stop now there's another additional condition to The Brokerage a stop limit so it's similar to the stop order but when the stop price is triggered example we say we want to buy when it hits 50 we can say that when it hits 50 help me execute this order this is called a stop order when it hits this price help me execute at the same time limit the price so I do not want you to buy at any price when it hits a particular price help me Execute order but I only want it at a certain price so let me give you an example here okay so if I put a stop limit uh going back to let's say just how we talk about buy stop so when I talk about buy stop same thing spy go back here we'll see that right now the price is 568 so we only want to buy it example if it goes above 600 okay this is just an example let me just do this and this is a buy stop order buy stop at 600 well it's actually called stop order but uh we know that in this case we are choosing a buy so it's a buy stop order at 600 now if I put a buy stop you can see buy stop limit okay the stop price the stop price means the trigger price is 600 you can see that when I put a stop limit they give me another function another input to put my limit price now this may be the case so now I would say that the limit price is if you remember limit price it is the maximum pre price I'm willing to pay when I'm buying a stock so I do not want to pay anything higher than the price if I'm buying a stock so let's say the stock price is 600 the limit price can be example uh 6 600 as well so what what if if I put 600 and 600 what I'm telling the brokerage the system is this if it hit $600 help me to buy but I do not want to pay anything more than 600 okay limit 600 so this called buy stop limit a stop limit okay limit 600 do not want to pay more than 600 then you'll be asking me Sean in that case how is it possible that we even get into this trade no it's possible because you must understand that stock prices it goes up it comes down and usually within a day it spikes up and down correct so it may trigger 600 it may even drop below 600 and in the end you may even buy it at 590 or 595 it is it is possible okay maybe not 595 but you you get an idea it was strike up and down and you believe that oh stop market is not going to fly up so so fast so immediate uh I want to actually bargain it if he 600 I want to BU it at 600 now you can even put example you believe that if you hit 600 it will drop back to let's say 599 okay if it hit 600 I want to buy it but I only want to buy it at 599 so you get what trying to say so you can actually have all these variations once you understand the functions of all these order types so order types are very very important again this is a slightly I would say advanced auto type okay especially if they very new so I can put here at 599 okay it's very very narrow but essentially what I'm telling the brokerage is this if it triggers at 600 okay if it hit 600 there a stop okay the stop is 600 hit 600 help me trigger this order but I only want to buy it at 599 the limit is 599 so limit is always talking about the maximum I'm willing to pay okay it is it is possible so this is uh what we call stop limit now similarly if let's say we are talking about a stop loss now uh stop loss meaning you say sell stop okay sell stop so right now we have the shares and we are concerned that the price may drop so what if the price drop I may lose all my profits I may lose money so one thing we can do is we can put a a stop limit as well so right now it's 568 we can put let's say 560 let me put 560 okay so if it drops below 560 help me trigger a sell order okay how do I trigger by putting a sell stop stop at 560 let me put this rate okay so when we put a sell stop limit a stop limit okay example let me go to ibkr let's say I already have this stock I'm going to put a sell order and this sell order it's a stop limit same thing they will ask me what's the stop price stock price means what's the trigger price the price where you want this order to be executed it is 560 cor I'm going to put 560 okay and the limit price I will also want them to let's say tell me okay rather I want to tell them I say okay when it hits 560 how to sell but do not help me sell uh unless okay unless I can get let's say five uh slightly lesser maybe 559 okay minimum help me get back 559 okay minimum help me get back 559 so you'll not see selling off at 558 557 it is it is not possible for the system to do that because you limit the system okay so let me put 559 559 again it's very narrow but you get a point the point is stop stop the stock price that you set in is the price that is being triggered the limit is the minimum I should get for this order to be uh executed so when you're selling the minimum you want to get is 559 okay just we talk about buying is the maximum you want to pay so actually the limit actually protects you in that sense now however that being said understanding the function as a investor myself for many years I would like to suggest that when you put a stop loss you do not put a stop limit the reason is this because sometimes the stock market goes down really fast and I want to get out at any price I'm not going to limit the system and say hey help me at least get back this price because if it's going down so fast I'm not going to bargain I want to get my Capital out as soon as possible so I do not put a stop limit later I'll come to a a summary again so that you know typically what we do okay but at least you understand what is a stop limit you want to execute a stop order and you want to ensure the price is still within what you to bargain so this is called a stop limit again stop is the trigger price limit is the price you want to get minimum or maximumly okay uh pay or get okay so again if this is very new to you you can actually rewatch the video a few times test it out using a demo account and it becomes a lot clearer so we have talked about six particular aut types let's talk about the last four now the last four okay the next one is called Trier now TR gives me a huge Trier okay why because this is one of my favorite order when it comes to taking profit okay so you can see a trail order is a stop order that Tri the market by a certain dollar or percentage again this is slightly Advanced but I highly recommend if you're my tri member if you see my trades I like to use Trier a lot okay why is that so now because it helps you maximize my profit you'll see why in a while so you can see that the stock price is adjusted as the price moves in your favor okay so what does it mean okay so there's an example here uh but the example that I used was Baba now now Baba okay uh well this trailing because we make 100% in a short period in time what happened was we entered Baba I think it was around let me let me just check when did we enter Baba okay it was I think sometime back oh yeah I was putting it in my telegram group so we enter it on the 6th of September we exit on 30th September uh which is about three weeks okay okay six of September you can see right here let me just 6 September oops I two nrow okay this is August and let me change it to day right so you can see right here on the 6th of September okay here we enter here okay and as I see Baba's price increases I did a trailing order okay so what's a trailing order let me show this uh this will be a little bit easier if I use a current stock that I have okay example SP spy so you can see oh number stocks okay let's say spy we've been talking about spy you can see that I've made a profit of about th000 plus about 1% plus we have Amazon we have number of them oh okay maybe this is a good one so uh mchi this is a China ETF it's gone out by quite a quite a fair bit so let me show you what I would like to do okay so here I will I will click on this okay let me go back a while I'll click on this three dots I will put a close Okay close I I bought this so now I'll be selling it so when I click on close they will automatically bring me to a sell order now you can see this sell order the the the type of order I will choose tra now when I choose tra what does it mean you can see that they also have a stock price okay the stock price is the price that I will trigger it and sell it off at market price I can leave this blank if I want but what I'm going to put is this I'm going to put example here a percentage and and I'm going to put let's say you can see that I've already make about 100 over per. so I'm pretty happy the price is going up but what I want to do is if let's say it's going higher and higher up and it drops by 10% I'm going to get out of it okay so if I'm going to put 10 and you see 10% and I'm going to put good to cancel what does this actually mean okay just to explain it using a chart okay right now you can see that this is the highest price or or in fact this is the market price right now let me show this this this is a very important order type which I would love all of you to like understand and see whether you want to use it because I find it very very effective so right here the current price is 52.98 you can see the current price it closes at 52.98 okay 52.98 so now this is the current price so I can actually set a 10% % tra order a 10% tra order means that anytime the price drops by 10% I will get out of this trade so let me do a quick calculation 52.98 multiply by 90% okay so what this means is if I put a trail order of 10% they will help me put a stop order at 47.68 47.68 I get it right 47.68 you can see it's quite a big gap okay but when you say I've already make money goes up at any point in time it drops from the highest point okay based on current price it drops by 10% it drops by 10% okay it will help me get out so I will still capture most of my gain I'm just going to get out at the lower portion of the 10% from 10% from the top okay now what happens what happens if let's say the price continues to go up if the price continue to go up this order will adjust accordingly so as the price goes up let's say to 64 okay let's say it goes up all the way to 64 now my stop my stop order because it's a trailing it will Trail it will actually follow follow the price as it goes higher and higher this stop order will also go higher and higher so same thing you will still measure 10% from the top and then adjust the stop accordingly it will be automated okay so right now uh instead of 47 from if the price goes to 64 multiply by minus 10% it will be 57.6 okay it'll be somewhere here 57.6 so you can see as the price goes up my stop loss actually catches the the price and it Trails behind so you can see this this how we maximize profit of course you can put a 5% and things like that but but imagine if it's too close okay how about if I just do 1% but if it's 1% that particular day if it just goes up and then strike the price a little bit you and you actually exit so I like to put a buff for maybe 5 to 10% okay so this is what a trailing stop loss is so a lot people have been asking wow what is this trailing stop loss why do I like to use it so so much that's the reason okay I do hope that this is useful for you this a trailing stock okay which is one of the order that one of my most preferred order in terms of capturing profit okay now the next one we can also put a trer limit now you realize that uh in almost any order we can put a particular order and when we put a limit right okay when we put a particular order like Trail or we put stop it means that once it hits that price example in this case once it hits 10% draw help me get out at market price any price help me get out get out of it but if I put a limit means once it hits a 10% drop helps me trigger the order but minimum I want to still get it out at a certain price got it so so let me just show you this so for example instead of trail I put a trail limit okay so a tra Li is a little bit more complicated uh so let's say I put uh I'm going to use the amount easier so currently you can see I put a particular a limit price so minimum uh I want to actually sell these stocks okay by if it drops by 10% but minimum I want to get it at 1130 okay can so this is what we can do to set as a limit price there's also a limit offset and also stock price but I'm not going to actually go into all this right now because it's really a lot more advanced and it's unlikely that most of us use it at the moment as a beginner's guide okay so but I just want you to understand there's also a Trier limit okay the last two types of orders Market on close and also limit on close okay I'm I'm going to go through this order this two order very very quickly it's pretty simple and this one is used using certain strategy and again as a beginner it is unlikely we will use it right now unless you have learned strategy on uh opening a particular order or going into a particular order when a market close so let me just show this so for example you say I want to buy spy and and usually Market on close for my strategies is usually used on options instead of stocks but let's go into this the the idea behind Market on close so let's say to buy spy okay I can put you can see Market on close when I talk about Market on close they don't allow me to input any price meaning you say by the end of the day around 4 a.m. or 4 pm New York time when the market closed help me buy spy regardless of the price so it's called Market on close does it make sense so this one typically is just a day order because well Market on close today you will not buy Market on close every single day so Market when it Clos on that day the last minute the last second help me enter at that particular price this is for certain strategy now if I put Market or limit on close well when it when the market close that day help me buy spy when it closes but maximum I'm willing to pay is let's say example $600 I do not want to pay anything above 600 that's my limit okay that's why that's it's called limit so this is a limit on close so these are the different strategies again and these are the different order types and let me just give you guys a summary for suggestion okay for beginners I'm going to focus on using limit order to enter like a buy limit I want to buy spy okay but I want to limit it to let's say 568 learn to bargain a bit it's okay but do not bargain too far off now it's 568 don't bargain at $200 okay so this is a a limit buy order and then after that set a stop loss after you create a limit order remember to put a stop loss so I want to get out of spy if I manage to buy at 560 560 I want to get out if it hits 550 example put a stop loss so you limit your losses okay so this is what what helps you then for intermediate and Advance you can use other strategies and other order types based on what kind of trading plans you have so again I do hope that this has been useful for you guys I'll be going through more 101 beginners guide because I realize it's very important do let me know in the comments if this is useful and if you have not subscribe please help me subscribe give a like to this video comments share this video so that every of us can build wealth and give wealth together but remember the last thing I want to end of the video as per almost all my video is this when you invest position size is everything so even with all these orders in place make sure that whatever amount you have in your portfolio take a certain portion of it which you budget to that trade you do not put your whole entire portfolio in a trade so size is nothing sizing is everything learn about position size in my next few videos I'll be covering that as well and I'll see you in the next few videos invest save and remember to position size I see you around