Market vs Limit vs Stop Orders: Execution Intent and Failure Modes
Why this page matters
This page is built as an operational reference. Use it before execution to quantify assumptions, document constraints, and reduce avoidable errors in live conditions.
Pre-execution checklist
Risk per trade is fixed and documented before entry.
Invalidation level is set before target selection.
Execution cost assumptions include spread, swap, and slippage where relevant.
A no-trade condition is explicitly defined.
Post-trade review fields are ready in the journal.
How to use this framework
Define the exact decision you need before opening a position or changing system parameters.
Input conservative assumptions first, then run a stress case with worse spread, latency, or volatility values.
Record outputs in your trade journal so the same process is repeatable across sessions and symbols.
Use the output as a pre-trade gate: if metrics violate your rules, skip execution instead of overriding discipline.
Common mistakes to avoid
Treating model output as certainty instead of an estimate under changing market microstructure.
Ignoring broker-specific conditions such as minimum lot, margin schedule, or swap adjustment windows.
Using isolated signals without confirming structure, liquidity window, and invalidation level.