Is there a diffrence between a sell limit and a sell stop pertaning to stocks?

Question

I'm a new investor just trying to figure it all out. Thanks

Answer 1

When you are trading in stocks through a broker, you can indicate the extent to which your funds can be allocated during a day (sell limit) and the risk apetite dicates the extent of absorption of losses which you can take. Stop sell indicates this point where in you can give your range beyond which you cannot take losses.

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Answer 2

A limit order

A limit order is commonly used to enter or exit markets at a specified price or better than the market price. In addition, a limit order allows the trader to manage the length of time that the order is current or outstanding before it is canceled.

Stop if Bid

A Stop if Bid order is used to buy or sell a currency is the Bid price breaches the specific level in the price field. Typically, Stop if Bid orders are used to buy a FX position in order to make sure a certain level is broken.

Stop if Offer

A Stop if Offer order is used to buy or sell a currency is the Ask price breaches the specific level in the price field. Typically, Stop if Offer orders are used to sell a FX position in order to make sure a certain level is broken.

Answer 3

Limit order - transaction proceeds at a price equal or better than the one specified. (Sell Limit - Limit price $50, stock will sell at a price of $50/share or better)

Stop order - a stop acts as a "tripwire"; transaction converts to market order when stop price is reached ("Sell Stop", AKA Stop Loss order - Stop price of $50.  Shares sold when price 'falls' to $50 or below)

Refer to investopedia.com for all your definitions and basic information.