FUTURES ORDER TYPES
Plain English
Futures use the same basic order types as stocks — market, limit, and stop — but add some futures-specific types. Stop orders are particularly important in leveraged markets where losses can accumulate rapidly.
Going deeper
Core futures order types: Market Order (immediate fill at best available price), Limit Order (buy/sell at a specific price or better), Stop Order (triggers a market order at a specified price — used for stop-losses and breakout entries), Stop-Limit Order (triggers a limit order at a specified price — avoids bad fills in fast markets but may not fill), Market-on-Close (MOC — executes at the settlement price), and OCO (One-Cancels-Other — pairs a profit target and stop-loss, canceling whichever isn't hit). Bracket Orders combine entry with automatic stop-loss and profit target. Given futures leverage, stop orders are not optional — they're essential risk management.
Examples
Bracket Order
You buy ES at 5000 with a bracket: Take-Profit at 5020 and Stop-Loss at 4990. When one is hit, the other is automatically canceled. This automates your risk management and removes emotional decision-making.
Stop-Limit vs. Stop
Oil is at $75. You set a sell stop at $74. In a flash crash, oil drops from $75 to $72 in seconds. Your stop triggers at $74 but fills at $72 (slippage). A stop-limit at $74 would only sell at $74 or better — but might not fill at all if the price gaps through.