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A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.

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4mo ago

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What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.


What is the difference between a stop order and a stop limit order on the thinkorswim platform?

A stop order becomes a market order when the stock reaches a certain price, while a stop limit order becomes a limit order when the stock hits a specified price.


What is a sell short limit order and how can it be used in trading?

A sell short limit order is a type of order placed by an investor to sell a stock at a specific price or higher, after borrowing it from a broker. This order is used in trading to profit from a stock's potential decline in value.


What is the difference between a maker fee and a taker fee in the context of trading?

A maker fee is charged when a trader adds liquidity to the market by placing a limit order that is not immediately filled, while a taker fee is charged when a trader removes liquidity by placing a market order that is immediately filled.


Can you explain how a limit sell order works in trading?

A limit sell order is a type of order in trading where you set a specific price at which you want to sell a stock. Once the stock reaches that price, the order is automatically executed. This allows you to control the price at which you sell your stock, potentially maximizing your profits.

Related Questions

What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.


What is the difference between a stop order and a stop limit order on the thinkorswim platform?

A stop order becomes a market order when the stock reaches a certain price, while a stop limit order becomes a limit order when the stock hits a specified price.


What is a sell short limit order and how can it be used in trading?

A sell short limit order is a type of order placed by an investor to sell a stock at a specific price or higher, after borrowing it from a broker. This order is used in trading to profit from a stock's potential decline in value.


What is the difference between a maker fee and a taker fee in the context of trading?

A maker fee is charged when a trader adds liquidity to the market by placing a limit order that is not immediately filled, while a taker fee is charged when a trader removes liquidity by placing a market order that is immediately filled.


Can you explain how a limit sell order works in trading?

A limit sell order is a type of order in trading where you set a specific price at which you want to sell a stock. Once the stock reaches that price, the order is automatically executed. This allows you to control the price at which you sell your stock, potentially maximizing your profits.


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

A trailing stop limit is a type of order that combines a trailing stop with a limit order, allowing investors to set a limit on the price at which the order will be triggered. A trailing stop, on the other hand, is a type of order that adjusts the stop price as the market price moves in a favorable direction, helping to lock in profits.


What is the difference between a work order and a purchase order?

what is the difference between a work order and a purchase order?


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

The stop limit order combines the characteristics of a stop order and a limit order. A basic stop order will buy/sell your security at the market price once your stop has been reached or passed. A stop limit order will buy/sell the security at a specified price once the stop has been reached or passed. If you use a stop limit, and your limit is too high/low your order may not get filled which will negate the purpose of putting the stop on in the first place. I tend to stick with stop orders if I am trying to protect a loss on a security.


What term is there for a difference between Bid and Ask pricing measured in pips?

Measured in pips, spread is the term used for a difference between bid and ask pricing. This is the cost of an order placement for a trader.


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

A market order is one in which your buy/sell request is executed at the current market price of that share A limit order is one in which your buy/sell request is executed only when the market price of the stock equals the limit price you set Example: Assuming stocks of XYZ ltd are trading at Rs. 100 and you place a market order for 10 shares then, 10 shares of XYZ limited would be bought for you at the price of 100 per share + the brokerage & taxes If you place a limit order for the same at Rs. 95 and the price of XYZ starts going down, the moment the price of XYZ limited touches 95 your order would be executed and 10 shares of XYZ at Rs. 95 per share would be bought for you.


Stock market limit orders?

A Limit order is one that would get executed the moment the price of the stock reaches your limit value. Lets say you want to by shares of XYZ limited and its trading now at $100 per share. You are expecting it to come down but still you want to buy and hence you place a limit order at $90 per share. When the share price comes down and at the moment it touches $90 per share your order would get executed and those shares would be bought against your name. If the share does not reach $90 by the end of the trading day, your order stands null and void.


What is the difference between taker and maker fees in trading platforms?

Taker fees are charged when you take liquidity from the market by placing an order that is immediately filled, while maker fees are charged when you provide liquidity to the market by placing an order that is not immediately filled.