Uploaded July 2017 | Updated September 2026, 1 week ago
This video explains the differences between the market, limit, stop loss, and stop limit orders on Robinhood. Using these correctly can help you limit your losses, and get the most profit on your sells.
The market limit is the default, and in my opinion the one you should use the least. This will sell the stock for whatever the most someone is willing to pay for it is. Unfortunately, the price can drop while you're selling it, so if you're selling 1000 shares, you could get the first 10 sold at a price that you like, but then the other 990 sell for much less.
The limit type sell is more predictable. The limit sell guarantees the price you sell the stock at, but not if it will sell. So you may only get the first 10 sold at the price you want out of 1000, and you will have to wait for the price to rise again for the rest to sell, but you at least know the price they will sell at.
The stop limit and stop loss orders are helpful in the event of a big swing in the price of the stock. For example, Rite-Aid stock recently lost a lot immediately when the merger between them and Walgreens fell through. The stop limit and stop loss would automatically sell the stock in this case if the share price falls to a certain level.
The difference between the two is the stop loss will trigger a market sell when the price is hit, when stop limit will trigger a limit sale. The limit sale is better in my opinion, as you never know how low and quickly a stock will drop in cases like the RAD merger. With a stop loss, the stock could sell for a much lower value than you wanted to, because it can happen that a stock drops way more because of panic selling than it should, and a few minutes rises back to a level you are comfortable selling at.
Check out my facebook at: facebook.com/pages/All-How-2s/198429346974010
or my twitter: twitter.com/AllHow2s
Or my website where I have a lot of other great tutorials (such as how to take a screenshot, or how to get the start button back on Windows 8): allhow2s.com
This video explains the differences between the market, limit, stop loss, and stop limit orders on Robinhood. Using these correctly can help you limit your losses, and get the most profit on your sells.
The market limit is the default, and in my opinion the one you should use the least. This will sell the stock for whatever the most someone is willing to pay for it is. Unfortunately, the price can drop while you're selling it, so if you're selling 1000 shares, you could get the first 10 sold at a price that you like, but then the other 990 sell for much less.
The limit type sell is more predictable. The limit sell guarantees the price you sell the stock at, but not if it will sell. So you may only get the first 10 sold at the price you want out of 1000, and you will have to wait for the price to rise again for the rest to sell, but you at least know the price they will sell at.
The stop limit and stop loss orders are helpful in the event of a big swing in the price of the stock. For example, Rite-Aid stock recently lost a lot immediately when the merger between them and Walgreens fell through. The stop limit and stop loss would automatically sell the stock in this case if the share price falls to a certain level.
The difference between the two is the stop loss will trigger a market sell when the price is hit, when stop limit will trigger a limit sale. The limit sale is better in my opinion, as you never know how low and quickly a stock will drop in cases like the RAD merger. With a stop loss, the stock could sell for a much lower value than you wanted to, because it can happen that a stock drops way more because of panic selling than it should, and a few minutes rises back to a level you are comfortable selling at.
Check out my facebook at: facebook.com/pages/All-How-2s/198429346974010
or my twitter: twitter.com/AllHow2s
Or my website where I have a lot of other great tutorials (such as how to take a screenshot, or how to get the start button back on Windows 8): allhow2s.com
