What is the difference between a stop order and a stop limit order?

What's the difference between a stop and a limit order? Chat or rant, adult content, spam, insulting other members, show more. I am demo trading on MT4. If you want to enter the market when the price goes higher than where it is now, then you have to right click above the market current price on the chart. What I do now is I place two sell limit orders, one for 0.

When you place a stop or limit order, you are telling your broker that you don't want the market price (the current price at which a stock is trading), but that you want your order to be executed when the stock price moves in a certain direction.

What Is the Difference of Buy Stop and Buy Limit?

One disadvantage of the stop order is that the order is not guaranteed to be filled at the preferred price that the investor states. Once the stop order has been triggered, it turns into a market order, which is filled at the best possible price. This price may be lower than the price specified by the stop order. Moreover, investors must be conscientious about where they set a stop order.

It may be unfavorable if it is activated by a short-term fluctuation in the stock's price. The primary advantage of a limit order is that it guarantees that the trade will be made at a particular price or better; however, your brokerage will probably charge a higher commission for the limit order, and it's possible that your order will not be executed at all if the limit price is not reached.

To learn more, see How does a stop-loss order work? What's the difference between a stop and a limit order? By Investopedia Staff Updated August 3, — 9: Learn the difference between buy limit orders and stop orders, including stop loss orders, and understand the risks of the Learn the differences between a stop order and a stop limit order. Traders use these as stop losses and regular investors Understand the differences between the two order types, a buy limit order and a sell stop order, and the purposes each one A stop order or stop-loss order is executed when a security reaches a pre-determined price as a market order.

Learn the difference between a market order and a limit order, and why a trader placing a limit order sometimes pays higher fees than a trader placing a market order. With stop-limit orders, buyers protect themselves from prices too high for their tastes. I used to be very uncertain and confused about Stop and Limit Orders until I use the reasoning that limit order would always be more profitable than stop order assuming same the same profit target.

For buy stop order the price set is above market price in long buy and below market price in sell stop order. For buy imit order on long buy one expects the price to fall below current market price before price moves up again.

Price set at the level below current market price would earned extra pips compared with the buy stop above. Thanks for these good tips.

I do have a question. Some limited options are shown in the volume drop-down menu. You can enter the other volumes manually. I mean simulation to back test a trading strategy to know it performance in past market conditions before going live with it. Regarding the problem you mentioned, that looks strange to me because when you add and modify the charts and then close the platform, all you have done will be saved automatically when you close the platform.

So that when you open it again you will see everything you had done. This is what MT4 does automatically. Same for sell pending orders. What I can say about your effort for us! Even you have made it totally free for us!

I want you to know that I have been spending hours daily to read your articles since last days. I just fall in love with your content and I am really grateful.

Anyway I am a professional WordPress developer and want to learn as my second profession. I noticed you are using WordPress as your blogging platform. If you want any help with your blog, I will be honored to help you and I will do it for free. Hi LuckScout Thank you very much for your informative post. May I know what to do if I want to sell instantly? Thanks again Chris, Youness and the above persons who give their comments, a million, long life, prosperity, and happiness to you both.

I have noticed when I was doing research on brokers, in their order execution policy, that some depending on platforms will treat Stop order as market order. It is normal to have the stop loss not triggered, or triggered at a different level during the strong news release. You can always follow up with your comments here: Do you think is a safe idea?

Yes, you can hedge when you want to close a position. Then you can close both positions at the right time and when the market is not too fast. However, if the broker wants to slip, he can do it anyway.

I am demo trading on MT4. My open position is one lot long executed a market buy order. What I do now is I place two sell limit orders, one for 0. You cannot do that on MT4. Those two sell limits will open two new short positions and will not close the open long position. You have to close half of your position manually. Now i understand, thank you. Hello Chris , so I guess as there is no difference between pending orders and these ones you explained, if we are not in the platform the order wont be executed?

Hi Chris, I used to be confused with those terms until I read your beautiful post. Here is your answer:

What Is the Difference of Sell Stop and Sell Limit?

Aug 11,  · Difference between buy limit, sell limit, buy stop, & sell stop? 4 replies Automatically moving stops and limits once a trade has been placed 2 replies I am looking for EA to put Buy Stops, Buy limits, Sell limits, and Sell Stops. A stop-limit order is technically two order types combined, having a stop price and an equal or different limit attached. When the stop price is hit, the trader's limit order is entered. What is the difference between a stop order and a limit order? - Limit and stop orders are often confused with each other as both are pending orders that instruct a broker to open or close a position when an asset’s price reaches a certain level.