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The last sale determines the price. Not the bid, not the ask....
but the actual last price at which a stock traded.
Claud
neo wrote:
> Claud
>
> I realize that the stop order must be at a price not a %. What I do not
> understand is "if the stock hits 45". Exactly what price determines if a
> stock hits 45?
>
> Thanks, neo
>
> ~ -----Original Message-----
> ~ From: owner-metastock@xxxxxxxxxxxxx
> ~ [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Claud Baruch
> ~ Sent: Tuesday, September 04, 2001 9:26 PM
> ~ To: metastock@xxxxxxxxxxxxx
> ~ Subject: Re: Stop Orders: Market vs. Limit
> ~
> ~
> ~ 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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