Stop order is the type of order that require from broker to execute a trade when it reaches a certain level, less apt than the current market price. They are also known as stop-loss orders.<\/span><\/p>\n These orders are different from market orders because the price is specified at which a trade should be executed. <\/span> Put simply, the stop-loss sell order is designed to limit an investor\u2019s loss on a particular stock. Stop-loss orders typically fall into four classes, although some dealers may offer products that vary in their structure and complexity. Some classes are more commonly used than others and dealers do not typically offer all classes of stop-loss orders.<\/span><\/p>\nWHAT IT IS IN ESSENCE<\/b><\/h4>\n
\nMarket order means that the broker has to execute a trade at the best price available when you make the order. But stop orders are opposite to limit orders, which require your broker to buy or sell an asset at a particular price that is more favorable than the current market price.<\/span><\/p>\n