Discover the differences between buy limit and stop orders, how they work, and their uses for savvy trading. Learn how they can help mitigate risks and automate trades.

Reviewed by Gordon Scott Fact checked by Ryan Eichler Limit Orders vs. Stop Orders: An Overview A limit order is a tool used by traders to make a purchase or sale at a specific price or better. A stop ...

A stop loss order is a trading tool that automatically sells a security if its price falls to a set level, helping investors limit losses without constantly monitoring the market. While it can protect ...

A buy limit order is a stock market order where investors set a maximum price for buying a security. This method lets investors control their purchase price and avoid paying too much in volatile ...