Limit
An order in which the customer specifies a price limit or other condition, such as the time of an order, as contrasted with a market order which implies that the order should be filled as soon as possible.
Stop
An order to buy at a price above or sell at a price below the current market. Stop buy orders are generally used to limit loss or protect unrealized profits on a short sale. Stop sell orders are generally used to protect unrealized profits or limit loss on a holding. A stop order becomes a market order when the stock sells at or beyond the specified price and, thus, may not necessarily be executed at that price.
2006-09-14 09:06:00
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answer #1
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answered by Anonymous
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A decrease order is one the place you positioned the fee decrease you opt to sell or purchase at. in case you do no longer set this it is going to easily sell or purchase freely with the industry, you unfastened some administration over the fee. Say you opt to purchase inventory of a company yet you do no longer opt to pay too plenty. The industry is fluctuating between $fifty 9 and $60 a proportion. you may place a decrease order to purchase for $fifty 9 so as that when this is contained obtainable it is going to fee you no extra suitable than $fifty 9. A provide up order is one that doesn't substitute into lively till a certian cost is reached. as quickly as that cost factor is attain the order will become lively. Say you own shares of a company and if the fee is going above a certian cost you opt to sell and take the income. you obtain at $fifty 9 and the fee is going as much as $sixty 5. to guard your income you may set a provide up order for $sixty 3 money. If the fee is going up you nonetheless carry directly to the inventory. If the fee is going all the way down to $sixty 3 the provide up order is set off and it will become a industry order. The gadget immediately sells the inventory on the open industry to guard your income. A provide up decrease order is a mix of a provide up and decrease order. Like a provide up order the commerce isn't placed till a certian cost is reached. yet relatively of a industry order, this is a decrease order. interior the final occasion say you positioned the provide up order to a decrease of $sixty 3. whilst the inventory hits $sixty 3 the order is activated however the commerce will in user-friendly terms settle for a minimum $sixty 3 sell expenses. those may well be troublesome because of the fact if the fee has long previous down it could bypass below your decrease cost and no shopper will take your inventory.
2016-12-18 10:18:38
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answer #2
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answered by ? 4
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Once you figure out what Buy-Stop orders are, the distinction between the first two will become clearer.
2006-09-14 09:05:47
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answer #3
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answered by Andrew Noselli 3
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Try
"investopedia.com" and "investorwords.com"
good reference spots
2006-09-14 11:33:36
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answer #4
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answered by Gemelli2 5
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