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A buy stop is triggered if the price trades at or is bid at the stop level.
A sell stop is triggered if the price trades at or is offered at the stop
level.
If a market goes through a stop level looking for the other side of the
trade then the stop is elected.
Example: Market is 41.50 bid 42.50 offered. Buy stop at $42.00. If a
market buy order is filled at $42.50 the buy stop at $42.00 becomes a market
order.
Just to finish the thought, you can use two different prices for your order.
Buy at 42.00 stop limit 42.75. If your stop is triggered you get the best
available price up to $42.75 but no higher. You may, in a thin market, not
be filled at all.
Chris Langguth
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of neo
Sent: Thursday, September 06, 2001 12:01 PM
To: metastock@xxxxxxxxxxxxx
Subject: RE: Stop Orders: Market vs. Limit
I called my broker to find out what price triggers the stop order. According
to them it is the Bid that triggers a stop order.
neo
~ -----Original Message-----
~ From: owner-metastock@xxxxxxxxxxxxx
~ [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of neo
~ Sent: Thursday, September 06, 2001 10:09 AM
~ To: metastock@xxxxxxxxxxxxx
~ Subject: RE: Stop Orders: Market vs. Limit
~
~
~ I still do not understand stop orders. What exactly is meant by
~ "once your
~ stop is elected"?
~ What exactly triggers the stop price? The bid, the ask, most
~ recent price,
~ any order past the price?
~
~ Thanks, neo
~
~ ~ -----Original Message-----
~ ~ From: owner-metastock@xxxxxxxxxxxxx
~ ~ [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Al Taglavore
~ ~ Sent: Tuesday, September 04, 2001 2:11 PM
~ ~ To: metastock@xxxxxxxxxxxxx
~ ~ Subject: Re: Stop Orders: Market vs. Limit
~ ~
~ ~
~ ~ 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
~ ~ > ~
~ ~
~
~
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