Stop Orders, also known as conditional orders, are another type of order that can allow you to control when to buy and sell – but they’re different from limit orders in a few subtle ways🚦

Instead of filling at a certain price or better, Stop Orders allow you to set a price that you want a stock to reach, and then if it reaches that price it places a regular Market Order 🔄

This price that the stock needs to hit to trigger your order is called the stop price 🛑

If you set a Stop Price above the current price, the stock needs to RISE to that price to trigger your order, and with a Stop Price below the current price, the stock needs to DROP 📈📉

The beauty of Stop Orders lies in their flexibility.

They can protect profits or limit losses by automatically triggering trades at predefined levels 🛡️

However, the risk is the same as Market Orders because a Stop Order places a Market Order if the stop price is reached!

And as you know for Market Orders, the final order fill price can be unpredictable, especially for volatile stocks or stocks with low volume 🎢

Next, we’ll talk about how you can utilize these different types of orders to achieve your investment goals! 🥅