All lessons
Market, limit and stop orders
“Buy” is not a complete instruction. The order type decides what you ask the platform to do next.
Choose between execution priority, price control and a conditional trigger.
A market order requests execution at available prices. It prioritises getting filled over controlling the exact price. Large orders or rapidly moving markets can produce several fills and a different average price from the quote you first saw.
A limit order specifies a worst acceptable price: a buy limit at that price or lower, a sell limit at that price or higher. Price control does not guarantee execution. Reaching a displayed level may not provide enough available size to fill your order.
A stop order activates after a defined trigger. A stop-market becomes a market instruction; a stop-limit becomes a limit instruction. Check whether the venue uses bid, ask or another trigger reference, and review expiry, partial-fill and cancellation rules before practising.
Let’s use numbers · hypothetical example
Price is 1.1000. A buy limit at 1.0950 waits for that price or better. A buy stop at 1.1050 waits for an upward trigger; its final fill may exceed 1.1050.
Keep in mind
An order can remain active after you forget it. Check open orders as well as current positions.
Your turn
In demo, describe one order for immediate entry, one for a cheaper buy and one for entry after a higher trigger.
A quick check before we move on
Which order controls the worst buying price but may not fill?
- Stop-market buy
- Buy limit
- Market buy
Check answer
Buy limit A limit sets the maximum purchase price. A market instruction accepts available prices and a stop-market only adds a trigger.
Sources and further reading
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.
