Respuesta :
A stop order, also known as a stop-loss order, is a directive to purchase or sell a security after its price hits a certain level, or the stop price.
What is Stop order and Market order?
A stop order, also known as a stop-loss order, is a directive to purchase or sell a security after its price hits a certain level, or the stop price. A stop order turns into a market order when the stop price is reached. The main distinction between a limit order and a stop order is that a limit order will only be completed at the specified limit price or better, but a stop order will be filled once it triggers at the designated price at the time of the market's current pricing.
A market order is a request to purchase or sell a stock at the best price currently being offered on the market. A market order normally guarantees an execution but not a certain price. When the main objective is to execute the trade instantly, market orders are best.
Market orders are deals that are designed to go through as soon as feasible at the going rate. Limit orders specify the highest or minimum price at which you are willing to make a purchase or sell decision.
If a "Stop" order is chosen, it transforms into a market order that will be filled as soon as possible. As a result, it is unknown what price the order is executed at. A "Limit" order, on the other hand, stipulates that the execution must adhere to the limit price specified or better. Limit orders are therefore fulfilled at that price or higher.
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