Clarytrade
Getting started

Market, limit and stop orders explained

The four orders every platform offers, what each one does, and which one protects you from a bad fill.

Updated 15 Jun 2026 · 6 min read

Every platform offers the same handful of order types. Knowing which to use is the difference between getting the price you expected and getting a nasty surprise.

Market order

Buys or sells right now, at the best available price. Fast and certain to fill — but in a fast or thin market the price you get can be worse than the one you saw. That gap is called slippage.

Use it when getting in or out now matters more than the exact price.

Limit order

Fills only at your price or better. A buy limit sits below the current price; a sell limit sits above it. You control the price, but the trade may never execute if the market doesn't reach it.

Use it to enter patiently or take profit at a set level.

Stop (stop-loss) order

Becomes a market order once the price hits your stop level, closing a losing position before it gets worse. This is the single most important risk tool most beginners underuse.

A stop is not guaranteed — in a gap or fast move it fills at the next available price, which can be worse than your stop. That's normal mechanics, not a glitch.

Guaranteed stop

Some brokers offer a guaranteed stop-loss that fills at exactly your level even through a gap — usually for a small premium or wider spread. Useful around known high-volatility events.

A simple rule

Decide your exit before you enter. Set a stop on every position and size it so that hitting the stop costs only a small, pre-planned fraction of your account — see risk management basics.

Educational content only, not financial advice. Trading carries risk and most retail accounts lose money.

Ready to compare platforms?

Put this into practice — get matched in three minutes.

Match me

Educational content only. Not financial advice. Trading carries risk. Read the risk guide.