Buy limit vs Buy stop
Look-alike pair
Full entries: Buy limit · Buy stop.
A buy limit and a buy stop are both pending orders to buy, but they sit on opposite sides of the current market price. A buy limit is placed below the market, while a buy stop is placed above it. That single difference determines when each order triggers and what you are trying to do.
Side by side
| Buy limit | Buy stop | |
|---|---|---|
| Position vs price | Placed below the current market price | Placed above the current market price |
| Trigger condition | Fills when the market falls to the limit price or lower | Fills when the market rises to the stop price or higher |
| Typical intent | Buy at a better price on a pullback | Buy on a breakout or to stop a short position |
| Execution price | At the limit price or better | Becomes a market order; actual fill may be worse than the stop price |
| Field mark | Order price is below the current quote | Order price is above the current quote |
| Broker handling | May be rejected if placed above the market; rules vary by broker and order type | May be rejected if placed below the market; rules vary by broker and order type |
Which word to use
Use buy limit when you want to buy only at a specified price or lower, and buy stop when you want to buy only after the market moves up to a specified price.
Family: XI · Look-alikes · Index A–Z