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Because they are treated differently on the market. Market orders (sell at any price) are handled first, and then, limit orders are. You can only guarantee one
by cschneid 16y ago
Because they are treated differently on the market.
Market orders (sell at any price) are handled first, and then, limit orders are. You can only guarantee one thing: either execution, or a price level. And when you're dealing with stop losses, you want to guarantee the execution in most cases.
- cschneid 16y agoAlso note that any reasonable broker has both StopLoss and StopLimit orders. Where it's either a market, or limit order that only gets triggered when the price goes to a certain level. (you can stop up too. "Buy if price goes above X", useful for closing short sales, or just getting on a bandwagon).
- hugh3 16y agoAh, thankyou. That makes a lot more sense now.