What are the different types of limit orders?

Limit: This is the maximum price at which you will buy a stock or the minimum price at which you will sell it.

Say, for example, that stock XYZ is trading at $75. You put in a limit order to buy it at $75.25. That means if the stock moves from the time you enter your order, the most you are willing to pay is $75.25. If it’s trading at $75.30, your order won’t get filled.

You can also put in a limit order below the current price so that you get filled if the stock comes down.

Stop loss: If the stock price hits your stop price, your stock will be sold at the market.

Stop limit: This is the same as a stop loss, but with a limit.

If you have a stop limit on XYZ at $70, you are establishing that even if your stop is hit, you will accept only $70 or better for the stock. If XYZ is falling fast and trades at $70 but quickly drops to $69 before your order can be filled at $70, you will not sell your stock unless it comes back to $70.

Trailing stop loss ($): This is the same as a stop loss, but the stop moves higher as the stock climbs.

If your stock is trading at $50 and your stop is $45, there’s a $5 difference. If the stock climbs $2 to $52, your stop will rise by the same amount to $47. If the stock makes its way to $80, your stop will still be $5 below the high price and will be set at $75.

Trailing stop loss (%): Rather than setting a price, you can set a percentage move as your stop. You may decide, for example, that whether the stock is trading at $50 or $80, if it falls 10%, you’re exiting the position.

Trailing stop limit ($): This is the same as a trailing stop loss ($), but with a limit. So, if your stop limit is $45 and the stock drops quickly to $44, your position will not be sold until it climbs back to $45.

Trailing stop limit (%): This is the same as a trailing stop loss (%), but with a limit. So, if your limit is 10% and your stock opens 12% lower, your order will not be filled until your stock is down only 10%.