JustChartsMarket vs Limit vs Stop Orders: Which Order Type Should You Use?
A market order buys or sells immediately at the best available price. A limit order only fills at your chosen price or better — a buy limit sits below the market, a sell limit above. A stop order becomes a market order once price reaches your level — a buy stop sits above the market, a sell stop below — and is used for breakouts and stop-losses.
Key facts
- Market order
- fills now; price not guaranteed
- Buy limit / sell limit
- below / above current price
- Buy stop / sell stop
- above / below current price
- Stop-loss
- a stop order that closes a losing trade
- Stop-limit
- triggers at a stop, fills only up to a limit
Market orders
A market order says “fill me now”. You are guaranteed a fill (if there is liquidity) but not a price — in fast markets you may get slippage.
Limit orders
A limit order sets the worst price you’ll accept.
- Buy limit — placed below the current price: “buy if it dips to 1.0800”.
- Sell limit — placed above the current price: “sell if it rallies to 1.0900”. Take-profit orders are sell limits (for longs).
You get your price or better, but the order may never fill.
Stop orders
A stop order waits until price reaches a level, then becomes a market order.
- Buy stop — above the current price: “buy if it breaks above resistance”.
- Sell stop — below the current price: used as a stop-loss on a long position or to sell a breakdown.
Because it becomes a market order, a stop can fill worse than its level when price gaps.
Quick reference
| Goal | Order | Placed |
|---|---|---|
| Buy now | Market buy | — |
| Buy a pullback | Buy limit | Below price |
| Buy a breakout | Buy stop | Above price |
| Sell a rally | Sell limit | Above price |
| Sell a breakdown / stop-loss on a long | Sell stop | Below price |
Other order types
- Stop-limit: triggers at the stop price but fills only up to a limit price — avoids bad fills but may not fill at all.
- OCO (one cancels the other): two orders where filling one cancels the other — for example a take-profit and a stop-loss.
- Trailing stop: a stop that follows price at a set distance as the trade moves in your favour.
Frequently asked questions
What is the difference between a limit and a stop order?
A limit order fills at your price or better and is used to buy dips or sell rallies. A stop order triggers when price reaches a level and then fills at market — used for breakouts and stop-losses.
Is a stop-loss a limit or a stop order?
A stop-loss is a stop order: once price reaches your level it closes the position at the next available price.
Why did my limit order not fill?
Price never reached your limit, or only touched it briefly with not enough volume at that price. Remember that sell prices are bids and buy prices are asks.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
Plan entries on a live chartThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.