Order Types Explained: Market, Limit, Stop and Stop-Limit Orders
How you enter and exit is part of your strategy. The right order type controls your price, protects you from slippage, and lets your plan run without you watching every tick.
A market order fills immediately at the best available price, a limit order fills only at your price or better, and a stop order becomes a market order once price reaches your level. Stop losses and take profits are resting orders. Limit orders control price; market orders control certainty of filling.
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Open the live chart →The main order types
| Order | What it does | Typical use |
|---|---|---|
| Market | Fills immediately at the best available price | Getting in or out now |
| Buy limit | Buys at or below a set price (below current price) | Buying a pullback into support |
| Sell limit | Sells at or above a set price (above current price) | Selling a rally into resistance |
| Buy stop | Buys when price rises to a level (above current price) | Entering a breakout |
| Sell stop | Sells when price falls to a level (below current price) | Entering a breakdown |
| Stop-limit | Becomes a limit order once the stop price is hit | Controlling the worst fill, at the risk of no fill |
Stop loss and take profit
A stop loss is an exit order that closes a losing trade at your invalidation level; a take profit closes a winning trade at your target. Setting both when you enter means your plan runs even if you step away. See risk management.
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Play free, no signup →Slippage
Stop orders become market orders when triggered, so in fast markets (news, the open, thin liquidity) they can fill worse than the stop price. That's slippage. Limit orders don't slip against you, but they may not fill at all if price never reaches them.
Trailing stops
A trailing stop follows price by a set distance as the trade moves in your favour, locking in some profit. It suits trending moves but can close trades early in choppy conditions.
Frequently asked questions
What is the difference between a limit and a stop order?
A limit order fills at your price or better and is placed where you'd like a pullback; a stop order triggers when price reaches a level and is used for breakouts and stop losses.
What is a buy stop order?
An order to buy once price rises to a level above the current price, often used to enter a breakout.
Can a stop loss fill at a worse price?
Yes. In fast or gapping markets a triggered stop fills at the next available price, which can be worse. This is called slippage.
Should I use market or limit orders?
Market orders prioritise getting filled; limit orders prioritise price. Many traders enter with limits at planned levels and use stops for protection.
Keep learning
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