Modern trading platforms provide participants with a rich set of order tools, enabling traders to automatically execute trades when specific events are triggered, thereby effectively managing risk and refining trading strategies. Among these, conditional orders are the most common and practical tool types, especially stop market orders and stop limit orders.
Both can automatically execute when the price reaches a specified level, but their execution logic is entirely different. This guide will analyze the operating principles, application scenarios, and practical operation methods of these two types of orders, helping traders make more precise choices based on market conditions.
Core Difference Between Market Stop Loss Orders and Limit Stop Loss Orders
The fundamental difference between conditional market orders and conditional limit orders lies in their execution method after being triggered.
- Conditional Market Order: When the price reaches the set point, it immediately converts into a market order and executes at the best available current market price. The characteristic is execution certainty.