|
PureBytes Links
Trading Reference Links
|
Quoted from a Lind-Waldock order guide;
"2.Limit order-Use this type of order when you want to be filled only at a
specified price or better. A limit buy order is placed at or below the
current market price, while a limit sell order is placed at or above the
current price.With certain caveats, you are guaranteed a fill if the market
trades THOUGH your price. If the market merely trades AT your price, you
are not guaranteed a fill.
"8.Stop Limit order-Use this type of ordr when you don't want to be filled
any worse than your stop price. Here, your stop and limit prices are the
same. Again, your order will become a straight limit order if, once your
stop is elected, the broker is unable to execute your order at your price
or better."
Hope this helps.
AlT
----------
> From: neo <neo1@xxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: RE: Stop Orders: Market vs. Limit
> Date: Tuesday, September 04, 2001 11:27 AM
>
> 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
> ~
|