Unlocking the Trading Puzzle: Decoding the Difference Between Limit and Stop Orders
In the fast-paced world of trading, understanding the nuances of different order types is crucial for success. Two commonly used order types are “limit” and “stop” orders. While they may seem similar at first glance, they serve distinct purposes and can significantly impact trading strategies. In this article, we will delve into the key differences between limit and stop orders, shedding light on their functionalities, benefits, and when to use them.