Stop Order
An order that becomes a market order if a trade takes place at or through the price stated in the stop order. A stop order can be used to protect a profit on a long stock position or limit losses on a short stock position, but does NOT assure a specific price of execution, since the order turns into a market order.
Market Order
An order to buy or sell a security at the best price available when the order reaches the trading floor.
Limit Order
An order to buy or sell a security at a specific price or better.
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