To understand limit orders and stop orders, let’s first define what is a market order. A market order tells someone’s broker to immediately buy or sell a security at the current price of the market. Therefore, a market order gives no control over the fill price. In essence, a market order buys at the high end of the spread (the difference between the bid and ask prices of a security), and sells at its lower end. To gain some control back over the price, investors and traders should consider
Limit Orders and Stop Orders
Limit Orders and Stop Orders
Limit Orders and Stop Orders
To understand limit orders and stop orders, let’s first define what is a market order. A market order tells someone’s broker to immediately buy or sell a security at the current price of the market. Therefore, a market order gives no control over the fill price. In essence, a market order buys at the high end of the spread (the difference between the bid and ask prices of a security), and sells at its lower end. To gain some control back over the price, investors and traders should consider