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Buy Stop
A Buy Stop is a pending order that instructs a broker to open a BUY position automatically once the market price rises to a specified level above the current price. It is commonly used by breakout and momentum traders who want to enter only after price confirms upward strength by breaking through a key resistance level, rather than trying to anticipate the move in advance. It differs from a Buy Limit, which instead buys at a lower price on a pullback.
Buy Limit
A Buy Limit is a pending order that instructs a broker to open a BUY position automatically once the market price falls to a specified level below the current price. It lets a trader plan an entry in advance rather than waiting and clicking manually, and is commonly used to buy a pullback, a support level, or a price the trader considers good value. The order only fills if the market actually reaches that lower price; otherwise it remains unfilled.