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Neo,
You can't place any stop, limit, stop limit, at a percentage. It MUST
be at a specific price that YOU designate. If stock is trading at
46 and you put in a stop at 45, that order becomes a market order
if the stock hits 45.
If you say sell at 45 stop limit, you want to sell if the stock hits 45
BUT you will only accept an execution at 45 or better. No guarantee
that your order will be executed.
If you place a limit order at 45, and the stock is trading at 46, you'll
receive an execution at 46 or possibly slightly more/or less.
Claud
neo wrote:
> 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
> ~
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