Basically FuturesUnderstand it
A market order prioritizes getting filled but exposes you to current liquidity conditions. A limit order constrains the price but might not trade. A triggered stop-market order is usually for exiting after a threshold, but the actual fill can be worse than the trigger. A stop-limit order avoids trading beyond its limit price but risks leaving you in a losing position. None of these orders removes market risk.
At a fast market open, a stop triggers at 5,000 but fills at 4,997. The three-point difference is part of realized loss, even if your plan expected an exit at 5,000.
Watch for this misconception
Using a stop-limit solely because it prevents a worse displayed price while ignoring nonexecution risk.
For a hypothetical liquid market and a thin overnight market, discuss when a limit entry may be preferable to a market entry.
Risk and expectancy tools ↗Which order may fail to execute despite the market moving beyond the stop trigger?
Check the sources
Hypothetical educational examples. Verify current product specifications and rules before making decisions.