Order types
Market orders
A market order fills right now at the best available price. It is fast, but in a fast-moving market you can get a worse price than you saw. That difference is called slippage.
Limit orders
A limit order waits for a better price. A buy limit sits below the current price ("buy only if it dips to here"); a sell limit sits above it. It fills at your price or better, but might never fill.
Stop orders
A stop order triggers when price moves through your level, then fills like a market order. A buy stop sits above the current price (to join a move up); a sell stop sits below it. Your stop loss is a stop order that closes a losing trade.
Remember: Limit = better price, waits. Stop = triggers on the move.
Test yourself
You want to buy EUR/USD only if it dips to 1.0800 (it is at 1.0850). Which order?
Buy limitA limit order waits for a better price below the current one.
You want to buy only if price breaks up through 1.0900 (it is at 1.0850). Which order?
Buy stopA buy stop triggers when price rises through your level.
What is slippage?
Getting filled at a different price than you askedIt happens most with market and stop orders in fast markets.
Which order type fills immediately?
Market orderMarket orders fill now at the best available price.
Your stop loss on a buy trade is a…
Sell stop below your entryTo exit a buy, you sell, and the stop sits below the current price.
Short interactive lessons and quizzes on real crypto and forex charts. Free to start, no real money involved.
Play Candlr freeMore in Forex Essentials
Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.