Stop Order vs Limit Order

What’s the difference between the two?

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A limit order allows an investor to set the minimum or maximum price at which they would like to buy or sell, while a stop order allows an investor to specify the particular price at which they would like to buy or sell.

Setting a specific stop price on a stock is known as a stop order, also known as a stop-loss order. A stock purchase or sale order is carried out after that stop price is reached. This order subsequently becomes a market order, trading immediately on the market.

When you purchase or sell a stock using a limit order, you agree to do so at a specific price. Therefore, for example, if you wished to purchase shares of a stock for $20, you could issue a limit order for that amount, and the order would only be executed if and when the stock price was at least $20.

This one might help:

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this may help you:-

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Stop orders are used to limit losses or protect profits, while limit orders are used to enter or exit a trade at a specific price or better.

the thread is filling with misinformation :frowning_face:

they are also commonly used to enter trades (about 98% of my trades, every day, are entered with stop orders)

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