Okay so i used to be a market order kind of a guy as i never trade news or other wide spread scenarios. However due to various reasons i am being encouraged to check out buy and sell limit orders as well as buy and sell stop orders. I fell kinda silly asking this however i thought that limit orders were just a price that you had in mind and you placed the order at the price. Say EUR/USD is at 1.3430 and you enter a limit order at 1.3500 then when the bulls charge in your order is executed at 1.3500. I also thought limits orders can't have no stops.
Stop orders i thought were identical to limit orders with the exception that there was always a stop loss added in. So in the above situation when you set a buy stop order at 1.3500 when the price is currently 1.3430 you are good to go only you are forced to set a stop loss in your order before it is executed.
However the platforms i have demoing lately all seem to be different and my mind is getting hazy...
Any help?
Stop orders i thought were identical to limit orders with the exception that there was always a stop loss added in. So in the above situation when you set a buy stop order at 1.3500 when the price is currently 1.3430 you are good to go only you are forced to set a stop loss in your order before it is executed.
However the platforms i have demoing lately all seem to be different and my mind is getting hazy...
Any help?