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

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Elsie Andrews
Answered 3 months ago
<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>