Although Limit and Stop Orders may seem like similar order types, their purposes and uses differ.
We have compared the properties and applications of the two types of orders based on whether you're buying or selling 👇
| Limit Buy |
Stop Buy |
- downward price trend
- target price must be below the current price
- will execute if the target price is surpassed
- may take multiple orders to fill
|
- applicable in upward market trends
- target price must be above the current price
- will execute if the target price is surpassed
|
| Limit Sell |
Stop Sell |
- upward price trend
- target price must be above the current price
- may take multiple orders to fill
- will execute if the target price is surpassed
|
- applicable in downward price trends
- can help avoid greater losses
- target price must be below the current price
- remains pending if the target price isn't reached
|
📄 Note
The funds required for the execution of these orders remain blocked until they are pending. An order cannot be modified unless it's cancelled and replaced by a new order.