What does stop limit order mean?

A stop-limit order is a tool that traders use to mitigate trade risks by specifying the highest or lowest price of stocks they are willing to accept. The trader starts by setting a stop price (order to buy or sell a stock once the price’s reached a specific point), and a limit price (an order to buy or sell a specific number of stocks when the price reaches a specific point).

What are the different types of limit orders?

Types of Limit Order Buy Order – A Buy Limit Order A Buy Limit Order A buy limit order is a trading system in which a trader gives instructions to buy a security only below a certain price, allowing them to determine the exact amount of investment they want to make in that security. read more is is the order placed at a specified limit price or lower than it.

What is the definition of limit order?

What is a limit order? A limit order is an order type that tells market centers that you want to buy or sell a security at a specific price or better. For example, in the below trading window you will see that I have an order ready to go that says I want to purchase 1,500 shares at a limit price of $128.65.