A limit order instructs the investor to trade a particular quantity of shares at a set price or better. For example, a limit order at $20 suggests that an investor wants to acquire a stock. Purchase this stock as soon as the price falls to $20 or less. The investor places a limit order when the stock is trading above $20. A limit order establishes the floor price for a seller. When the stock is trading below$20, a limit order at $20 is placed, and the broker is instructed to sell the shares when the price hits $20 or above. Limit orders are automatically executed whenever there is an opportunity to trade at the limit price or better. This relieves the investor of the burden of price monitoring and allows the investor to lock in profits. The deal will only be executed if the given price is met or exceeded.
In contrast, a stop order is meant to restrict losses. A stop order is an instruction to trade shares if the price falls below a certain level, known as the stop price. A stop order at$20, for example, placed by the owner of a stock now trading at$23, indicates If the stock price reaches $20, sell it at the market price. Someone intending to purchase the same stock may be waiting for the proper chance (a price drop), but they may want to set a stop order at $28. This would limit the downside by setting a cap on the cost of acquiring the shares.
To place an order in CFD account go to Orders screen in Trive Trader. And choose one Limit Order or Stop Order.
You can view all options when by clicking you click on any transaction oin ‘Quick Trade’ screen. Also all can be seen on Trive Trader’s Pending Orders screen when you click on any product.