What is the difference between limit entry and stop entry in trading?

<p id="isPasted">In trading, limit and stop orders are both used to enter or exit a trade at a specified price, but they differ in how the order is executed when the price is reached. A limit order specifies the exact price you want to buy or sell at, and the order will only be executed if the price reaches that level or better. A stop order, on the other hand, becomes a market order when the specified price is reached, meaning it will be executed at the best available market price at that time.&nbsp;</p><p><br></p>

<p id="isPasted">A limit entry order allows you to specify a better price than the current market price, ensuring you don't pay more when buying or receive less when selling, but it might not be filled if that price isn't reached. A stop entry order, on the other hand, uses a stop price to trigger a market order, which then executes at the best available price, ensuring your trade is opened quickly when a certain price level is breached, but you risk getting a worse price. &nbsp;</p><p>Limit Entry Order&nbsp;</p><p>Purpose: To enter a trade at a price you determine to be more favorable than the current market price.&nbsp;</p><p>How it Works:&nbsp;</p><p>Buy: You set a price below the current market price. The order will only execute if the price drops to your limit price or lower.&nbsp;</p><p>Sell: You set a price above the current market price. The order will only execute if the price rises to your limit price or higher.&nbsp;</p><p>When to Use: When you want to buy at a lower price or sell at a higher price and are willing to wait for that specific price to be met.&nbsp;</p><p>Stop Entry Order&nbsp;</p><p>Purpose: To enter a trade when the market moves in a specific direction and reaches a predetermined price, often as a form of entry to capitalize on momentum.&nbsp;</p>