How does a stop order differ from a limit order?

remember that the key difference between a limit order and a stop order is that the limit order will only be filled at the specified limit price or better; whereas, once a stop order triggers at the specified price, it will be filled at the prevailing price in the market—which means that it could be executed at a price significantly different …

What is a stop price and a limit price?

The stop price is a price that is above the market price of the stock, whereas the limit price is the highest price that a trader is willing to pay per share. For example, if John intends to buy ABC Limited stocks that are valued at $50 and are expected to go up today, he can put a stop price at $55.

What is stop market vs stop limit?

Stop Market and Stop Limit orders will appeal to different users utilising these orders for different reasons. A stop market order will be executed above/below the trigger price but exposes the user to theoretical risks of sandwich attacks. Comparing this to stop limit orders, there is a chance that these orders do not get executed during ...