Is it better to enter a stop entry order with a limit or limit Only to try to catch Market?
1/19/2024 00:48am
It is better to enter a stop entry order with a limit price to try to catch the market. A limit order is visible to the market and instructs your broker to fill your buy or sell order at a specific price or better. A stop order isn't visible to the market and is triggered by a specific price. A limit order can be seen by the market, while a stop order can't be seen until it is triggered. Additionally, a limit order uses a price to designate the least acceptable amount for the transaction to take place, while a stop order uses a price to trigger an actual order when the specified price has been traded. Therefore, entering a stop entry order with a limit price allows you to set a specific price at which you want to buy or sell your stock, and ensures that you don't buy or sell at a price worse than your limit price. It also allows you to take advantage of market conditions and potentially execute your order at a better price.