Can you set a stop loss and limit sell at the same time Binance?

• Overview
• Introduction to Orders and Execution
  • Overview
  • Execution
  • Understanding Order Execution
  • Open Order
• Market, Stop, and Limit Orders
  • Overview
  • Market Order vs. Limit Order
  • Limit Order vs. Stop Order
  • Buy Limit Order
  • Buy Stop Order
  • Stop-Loss Order
  • Determining Where to Set Your Stop-Loss
  • Stop-Limit Order
  • Stop-Loss vs. Stop-Limit Order
  • Buy Limit vs. Sell Stop Order
  • Take-Profit Order
• Order Duration
  • Overview
  • Time In Force
  • Day Order Definition
  • Good 'Til Canceled [GTC]
  • Immediate Or Cancel Order [IOC]
  • Fill Or Kill [FOK]
  • Market-On-Open Order [MOO]
  • Market-On-Close Order [MOC]
• Advanced Order Types
  • Overview
  • Trailing Stop
  • Conditional Order
  • Contingent Order
  • One-Cancels-the-Other Order [OCO]
  • Iceberg Order

Limit Orders vs. Stop Orders: An Overview

Different types of orders allow you to be more specific about how you'd like your broker to fill your trades. When you place a limit order or stop order, you tell your broker you don't want the market price [the current price at which a stock is trading]; instead, you want your order to be executed when the stock price matches a price that you specify.

There are two primary differences between limit and stop orders. The first is that a limit order uses a price to designate the least acceptable amount for the transaction to take place, while a stop uses a price to merely trigger an actual order when the specified price has been traded. The second is that a limit order can be seen by the market; a stop order can't until it is triggered.

For example, if you want to buy an $80 stock at $79 per share, then your limit order can be seen by the market and filled when sellers are willing to meet that price. A stop order will not beseen by the marketand will only be triggered when the stop price has been met or exceeded.

In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price triggered. Thus, a stop-limit order will require both a stop price and a limit price, which may or may not be the same.

Limit Orders

A limit order is an order to buy or sell a stock for a specific price. For example, if you wanted to purchase shares of a $100 stock at $100 or less, you can set a limit order that won't be filled unless the price you specified becomes available. However, you cannot set a plain limit order to buy a stock above the market price because a better price is already available.

Similarly, you can set a limit order to sell a stock when a specific price is available. Imagine that you own stock worth $75 per share and you want to sell if the price gets to $80 per share. A limit order can be set at $80 that will only be filled at that price or better. You cannot set a limit order to sell below the current market price because there are better prices available.

Stop Orders

Stop orders come in a few different variations, but they are all effectively conditional based on a price that is not yet available in the market when the order is originally placed. When the future price is available, a stop order will be triggered, but depending on its type, the broker will execute them differently.

Many brokers now add the term "stop on quote" to their order types to make it clear that the stop order will only be triggered when a valid quoted price in the market has been met. For example, if you set a stop order with a stop price of $100, it will be triggered only if a valid quote at $100 or better is met.

A normal stop order will turn into a traditional market order when your stop price is met or exceeded. A stop order can be set as an entry order as well. If you wanted to open a position when the price of a stock is rising, a stop market order could be set above the current market price, which turns into a regular market order when your stop price has been met.

Stop-Limit Orders

A stop-limit order consists of two prices: a stop price and a limit price. This order type can activate a limit order to buy or sell a security when a specific stop price has been met. For example, imagine you purchase shares at $100 and expect the stock to rise. You could place a stop-limit order to sell the shares if your forecast was wrong.

If you set the stop price at $90 and the limit price at $90.50, the order will activate if the stock trades at $90 or worse. However, a limit order will be filled only if the limit price you selected is available in the market. If the stock drops overnight to $89 per share, that is below your stop price so that the order will be activated, but it will not be filled immediately because there are no buyers at your limit price of $90.50 per share. The stop price and the limit price can be the same in this order scenario.

A stop-limit order has two primary risks: no fills or partial fills. It is possible for your stop price to be triggered and your limit price to remain unavailable. If you used a stop-limit order as a stop-loss to exit a long position when the stock started to drop, it might not close your trade.

Even if the limit price is available after a stop price has been triggered, your entire order may not be executed if there wasn't enough liquidity at that price. For example, if you wanted to sell 500 shares at a limit price of $75, but only 300 were filled, then you may suffer further losses on the remaining 200 shares.

A stop order avoids the risks of no fills or partial fills, but because it is a market order, you may have your order filled at a price much worse than what you were expecting. For example, imagine that you have set a stop order at $70 on a stock that you bought for $75 per share.

The company reports earnings after the market closes and opens the next day at $60 per share after disappointing investors. Your order will activate, and you could be out of the trade at $60, far below your stop price of $70.

• Order Definition
  1 of 26
• Execution Definition
  2 of 26
• Understanding Order Execution
  3 of 26
• Open Order Definition
  4 of 26
• Market Order vs. Limit Order: What's the Difference?
  5 of 26
• Limit Order vs. Stop Order: What's the Difference?
  6 of 26
• Buy Limit Order: Definition, Example, Pros and Cons
  7 of 26
• Buy Stop Order Definition
  8 of 26
• Stop-Loss Order Definition
  9 of 26
• Determining Where to Set Your Stop-Loss
  10 of 26
• Stop-Limit Order Definition
  11 of 26
• Stop-Loss vs. Stop-Limit Order: Which Order to Use?
  12 of 26
• Buy Limit vs. Sell Stop Order: Whats the Difference?
  13 of 26
• Take-Profit Order - T/P
  14 of 26
• Time In Force Definition
  15 of 26
• Day Order
  16 of 26
• Good 'Til Canceled [GTC] Definition
  17 of 26
• Immediate Or Cancel Order [IOC]
  18 of 26
• Fill Or Kill [FOK] Definition
  19 of 26
• Market-On-Open Order [MOO] Definition
  20 of 26
• Market-On-Close [MOC] Order Definition
  21 of 26
• Trailing Stop Definition and Uses
  22 of 26
• Conditional Order Definition
  23 of 26
• Contingent Order Definition
  24 of 26
• One-Cancels-the-Other [OCO] Order Definition
  25 of 26
• Iceberg Order Definition
  26 of 26