Two orders entered below the market
Buy Limit and Sell Stop
Market Order
Order to buy or sell a security at the best price available when it reaches the marketplace.
Stop Order
A memorandum order from a customer that becomes a market order if a trade takes place at or through the price stated in the memorandum.
Two orders entered above the market
Sell Limit and Buy Stop
Stop Order Purpose
Can protect a profit or limit losses on an existing position, but cannot assure a specific price of execution.
Limit Order
Order to buy or sell a security at a specific price or better.
Stop Limit Order
A combination of a stop and a limit order. It is first a stop order, then becomes a limit order.
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