Knowing the order types is not enough. You need to know exactly HOW to execute each one correctly on the exchange. A single missed checkbox — like forgetting Close on Trigger on a stop loss — can leave a position completely unprotected, or flip you into a position you never intended to hold.
Limit order: set price, quantity, buy long/sell short → confirm → appears in Active Orders and order book
Market order: fills immediately at current market price; no resting order appears; taker fee charged
Stop Market: set stop trigger price → MUST check Close on Trigger for all stop loss orders
Last Price trigger = fastest execution reference for stop losses (last traded price on exchange)
Index Price = composite from multiple exchanges (slower). Mark Price = index + basis
Stop without Close on Trigger = breakout entry tool — NOT a stop loss; different use entirely
Lesson
The Critical Rule — Close on Trigger for Every Stop Loss
The most common and most costly execution mistake on derivatives exchanges is placing a stop order without enabling Close on Trigger. Close on Trigger ties the stop to your position: when it fires, it immediately stops you out at market — no extra margin needed, guaranteed to close what you hold. Without it, the stop is just a standalone order that can be rejected for insufficient margin or execute after your position has already changed — leaving you unprotected or flipped.
Correct Stop Loss setup: Stop Market order → set trigger below entry (for longs) → check Close on Trigger → confirm
Without Close on Trigger: the stop is not tied to your position — it needs its own margin, can be rejected, or can fire after your position has changed, leaving you unprotected or flipped into an unintended position
Last Price trigger: fastest execution; recommended for all stop losses; triggers on last traded price of the contract
Index Price trigger: slower; less prone to sharp wick spikes; sometimes preferred for larger positions
After placing a stop loss, always verify it appears in the Stops tab with the correct trigger price
Before any trade begins: entry in Active Orders + stop loss in Stops tab = both must show before the market moves
Never enter a trade without all protective orders confirmed and visible in the correct exchange tabs
Check Yourself
A trader places a stop sell order to protect their long position. They forget to enable Close on Trigger. What is the risk?
The stop may not actually protect the position — without Close on Trigger it is not tied to the position: it needs its own margin, can be rejected, or can fire after the position has changed, leaving the trader unprotected or flipped
No risk — stop orders always close the existing position regardless of settings; Close on Trigger is optional for experienced traders
The stop executes at a slightly worse price — Close on Trigger only improves fill quality, not whether the position closes
Answer it (with a live chart) in the interactive lesson.
Liquidity Theory · Learn · Analyze · Trade together Educational content only — trading involves substantial risk and most beginners lose money. Nothing here is financial advice.