Difference Between Buy Limit And Buy Stop at Buying

Difference Between Buy Limit And Buy Stop. The market might be at 1.1100 and you want your broker to place a trade if the market drops to 1.1000. The buy stop order price limit is often placed above the current market price on a stock which is not yet purchased.

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; A buy stop order would be an order to buy the market at a price above the current price. A sell stop limit order is placed below the current market price.

A buy stop order would be an order to buy the market at a price above the current price. This is basically the same thing as a buy stop, except that you are confident that the market will reverse if it gets down to a certain price. When the stop price is triggered, the limit order is sent to. They are almost the same.