When should you place a limit order?

Limit orders are the best choice when you have a specific price in mind to buy or sell a stock. For example, if you think Tesla (TSLA) stock is going to drop below $700 per share, you could place a limit order to buy shares at $699. In this case, your order would only go through if the stock reaches the $699 price point or lower.

What is a stop-limit order?

A stop-limit order combines this type of order with a limit order by securing a limit for filling your stop-loss order. For example, you might place a sell stop-limit order to have a stop price at $30 and a limit at $25.

What is a buy limit order & sell limit order?

When you place a limit order, you are telling a broker to buy or sell shares of stock when and only when the price is right. A buy limit order tells your broker to purchase shares once a stock falls below a certain price—the so-called limit price. With a sell limit order, a broker only sells your shares once the stock rises above a set limit price.

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

In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered. Thus, a stop-limit order will require both a stop price and a limit price, which may or may not be the same.