Equity Question. Distinction between stop order n limit order

CFA Level I
#1

Please can some one help me make it more simple

thanks

#2

A stop-sell order says, “If the price drops _ to or below this value _, sell.”

A sell limit order says, “Sell if you can get _ this price or higher _.”

They’re very different beasts.

A stop-buy order says, “If the price rises _ to or above this value _, buy.”

A buy limit order says, “Buy if you can get _ this price or lower _.”

They’re very different beasts.

#3

Makes it ssimpler thanks!

#4

You’re welcome.

#5

stop sell protects you if the price is going up and you are expecting it to go down, right?

#6

You’re hoping that it goes up, but if it goes down you sell to limit your loss.

#7

S2000magician, your explanation is always so clear!

#8

Thanks, the. (Or should I call you, Miss same2?)

That’s my goal. It’s nice to succeed occasionally.