Stop orders and limit orders are two types of orders used in currency trading, but they work differently.

When the price of a security reaches a certain point, known as the stop price, a stop order is placed to buy or sell it. The order becomes a market order and is executed at the best available price when the stop price is reached. Stop orders are typically used to limit losses or to protect profits.

On the other hand, a limit order is an order to buy/sell a security for a specific price, also known as the limit price or better. If the market price does not reach the limit price, a limit order cannot be executed. The limit price determines the maximum price the buyer is willing to pay or the minimum price the seller is willing to accept.

Basically, the main difference between a stop order and a limit order is how they are executed. A stop order becomes a market order when it reaches the stop price, while a limit order is executed only at the specified limit price.