What's the Difference Between Stop Loss and Limit Orders?

This is a discussion on What's the Difference Between Stop Loss and Limit Orders? within the New to Trade2Win forums, part of the Reception category; You can also have a stop limit, which is where you place a stop order but say you will only ...

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Old Mar 8, 2012, 10:27am   #17
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re: What's the Difference Between Stop Loss and Limit Orders?

You can also have a stop limit, which is where you place a stop order but say you will only give so much slippage...i.e...working a stop at 5850 on Ftse with a limit of 2 tic's, so 5848 and no more, this is a very dangerous because if the market gaps by trading say 5851 then next print is 5847 then you wont be stopped out. I would recomend that never use a stop limit for this reason.

Last edited by timsk; Jun 8, 2012 at 4:52pm. Reason: Removed quote of deleted post.
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Old Aug 23, 2013, 7:57am   #18
 
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when it hits your limit you are the dogs when it hits your stop the computer goes through the window
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Old Aug 23, 2013, 2:29pm   #19
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Good question. The first gets you out of a trade and the other gets you in. Stop Losses used to Close at certain price; to stop losses getting worse but also for protecting profits on winners. I use them to make sure I get out at worst-case scenario, but choose your levels carefully – not too close to prior lows/highs or you might get spiked out. Limit Orders are to Open at a certain price, or better. They’re good for getting a certain price (you won’t pay worse), but you’ve got no guarantee of getting into trade unless market trades there. Hope this helps.
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Old Apr 6, 2015, 11:49pm   #20
 
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learning how to set my stop-losses properly was one of the biggest benefits for me as far as loss prevention. When i first started my biggest losses came when i was trading on margin and didn't set my stop correctly.
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Old Nov 2, 2017, 10:05am   #21
 
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A stop order, also referred to as a stop-loss order, is an order to buy or sell a stock and A limit order is a take-profit order placed with a bank or brokerage to buy or sell a set amount of a financial instrument.
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