In the trading market, there are three types of orders in trading. Market Order, Limit Order, and Stop Order. Depending upon the investment types and financial market, traders are advised to choose their orders. This blog of Wissix Trust Group discusses everything to know about Limit Order and Stop Order which might help traders to find the best order for their investments.
Limit-Order and Stop-Order: Overview by Wissix Trust Group
In trading, a limit order is a kind of direction to sell or buy a stock, bond, or any investment for a certain amount of price. It changes according to buying and selling. While buying a stock, the limit order can only be performed at the limit price or even lower price. Whereas it becomes the opposite in terms of selling. At the time of selling, the Limit-Order is always executed at a higher limit price.
A Stop-Order is a type of order where traders select a specific price for their stocks or investments as a stop price. A stop order is triggered by the price. Suppose a trader sets a stop order with a specific amount so it will be triggered only if that value is met or exceeded. There are three types of stop-orders in the market; stop loss, stop entry, and trailing stop loss.
Stop Loss
It works as it is named. It stops losses helping traders to get maximum benefits. A leading stop-loss order feature is typically available on internet trading platforms like the Wissix Trust Group. These orders automatically adjust the stop price level to reflect changes in the market. A trader can specify the amount of price reversal the market needs to experience to stop out.
Stop Entry
This is similar to a limit order. A stop-entry order enables investors to initiate a transaction at an established target price. To buy a stock it goes above the ongoing price and for a stop-entry order to sell, the price goes below the market.
Stop Trailing
A trailing stop is an alternative to a standard of Stop-Order, that can be placed at an interval from the current market price of the stock. An investor sets a trailing stop loss on a long investment below the current market price and for a short trade above the current market price.
To know more about order types, visit Wissix Trust Group’s website.
Bottom Line
Order types including limit orders and stop orders provide a trader with more control over their trade than a market order does. A market order instructs brokers to crack the deal on an immediate basis not focusing on the price. By placing a limit order or stop order, traders mean that they do not want to crack the deal in the current trading price and they are highly interested in executing the order when the price meets their expectations. Wissix Trust Group helps to find the best possible price for the trader’s maximum benefit. Start your trading journey today.
