AnswerPls

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

Asked by Kyle Sarmiento on November 03, 2021

Categories: Personal finance Health insurance


Rating: 4.1/5 (65 votes)

A sell stop limit order is placed below the current market price. A buy stop limit order is placed above the current market price. When the stop price is triggered, the limit order is sent to the exchange and a buy limit order is now working at or lower than the price you entered.

What is the difference between a stop order and a limit order? What is the difference between a buy limit and a stop order? A buy limit order is used when an investor wants to open a long position in a stock at a certain price, while a stop order is used by an investor who wants to lock in profits or limit losses by exiting a position.

Do market orders get filled before limit orders? If I want to sell, I set the limit 1% below the market price. If your limit price on a buy order is higher than the lowest offer, you still get filled at the lowest offer. If before your order is submitted someone fills all offers up to your limit price, you will get your limit price.

How does a limit order work? What is a Limit Order? A limit order is a type of order to purchase or sell a security at a specified price or better. For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will be executed only at the limit price or a higher one.

How does buy limit order work? What is a Buy Limit Order? A buy limit order is an order to purchase an asset at or below a specified price, allowing traders to control how much they pay. By using a buy limit order, the investor is guaranteed to pay that price or less. While the price is guaranteed, the filling of the order is not.