Common Stock Market Order Types - Limit, Market and Stop Orders

Common Stock Market Order Types – Limit, Market and Stop Orders

Common Stock Market Order Types – Limit, Market and Stop
In this ultimate guide to stock market order types, we discuss the three most common order types you need to know for buying and selling stocks: market order, limit order, stop order.

You can use limit orders to buy or sell stock. You can use market orders to buy or sell stock. Today we show you how to use each type of order, and the most likely trade setups to implement each type of order.

Most stop traders understand the stop loss order. Which is also known as a “sell stop” order. The stop loss order gets you out of a trade, it sells a stock you bought.

Today we discuss the “buy stop order” which gets into a new trade. It works the same as a stop loss order, but it gets you into a new trade by buying stock, or covering a short sale to exit that trade.

We also discuss the differences between a limit order and a market order. When to use each type of order, as well as the pros and cons of each order type.

Pete Renzulli
 

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