RE: Stop Orders: Market vs. Limit

["neo" <neo1@xxxxxxxxx>]

Claud

What do you mean by the "price"? As I understand it, a limit order must be
executed within the bid ask spread. If one had a stop market order at, say,
6% below the current price, could someone place a limit order at 7% below
the current price and capture your stop order? What determines when the stop
"price" is hit?

Thanks, neo

~  -----Original Message-----
~  From: owner-metastock@xxxxxxxxxxxxx
~  [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Claud Baruch
~  Sent: Saturday, September 01, 2001 2:06 PM
~  To: metastock@xxxxxxxxxxxxx
~  Subject: Re: Stop Orders: Market vs. Limit
~
~
~  There are 4 orders:
~
~  Market Order.....you sell at the bid.
~  Limit Order....You will only sell at your specified limit. (No guarantee
~  of execution.
~  Stop Order....Once the price  you designate as "Stop", it becomes
~  a market order.
~  Stop Limit...Once the price reaches your designated price, it becomes
~  a limit Order...you won't accept less. (No guarantee of execution.)
~
~  Claud
~
~  neo wrote:
~
~  > Would someone please further my understanding of market and limit stop
~  > orders?
~  >
~  > As I understand it, all limit orders must be filled within the bid/ask
~  > spread. With a stop market order, it seems that someone could
~  just place a
~  > limit order and buy/sell one's stock well outside of the
~  trading range. Is
~  > this true? If so, they would be useless.
~  >
~  > The problem with a limit stop order is that the price could be
~  passed in a
~  > gap and not get filled.
~  >
~  > Thanks, neo
~