Learn the difference between market, limit, and stop orders – and when to use each. Practice with our interactive simulator.
An order is your instruction to a broker to buy or sell a security. The two most common types are market orders and limit orders. Understanding the difference helps you control the price you pay or receive.
Buys or sells immediately at the best available current price. Execution is fast, but you may get a slightly different price than the last quote (slippage). Best when speed matters more than price.
Buys only at a specified maximum price (or sells at a minimum price). The order waits until the market reaches your limit. Gives price control but may not execute if the price never hits your limit.
Becomes a market order once a specified stop price is hit. Used to limit losses or protect profits. Example: sell if price drops to $45 to prevent further loss.
Combines stop and limit: after the stop price is triggered, a limit order is placed. This gives price control but may not execute if the price moves quickly past your limit.
See how different order types behave with a hypothetical stock price. Set the current price, then configure an order and see if it would execute.
This simulator simplifies market behavior. In reality, order execution depends on liquidity, bid‑ask spread, and other factors.