What do I need to worry about if I just want to buy a simple straight forward order? I understand only the first three.Whats the best choice you could suggest?
Market Order
Limit Order
Stop Order
Stop-Limit Order
Day Order
Good-Til-Cancelled Order
2007-03-10 10:17:56 · 3 answers · asked by Agent_Detergent 2 in Business & Finance ➔ Investing
Market order means you are paying whatever the market price is (not recommended)
Limit Order means you will pay YOUR price on a certain stock. (Recommended)
Stop Order and Stop Limit orders are the same thing. You are putting a limit on how much loss you are willing to take on a particular stock (MANDATORY)
Day Order only means the order is good until 4pm that day. (usless on market orders)
GTC means that if you want apple at $70 with can wait for the market to go to 70 and buy it then. (Used primairly with limit orders)
2007-03-10 10:26:22 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Stop-Limit Order: Say, the price is at $50 and you want to protect yourself by selling if the price drops to $47, but you don't want to sell for less than $46.80. You place a stop-limit order with the stop price at $47 and the limit price at $46.80 (some brokers only allow you to enter one price for both). When the price drops to $47, a limit order for $46.80 is initiated, meaning you'll get your sell somewhere over that price...or not at all. Stop-limit orders are a bad idea, IMO (not to be confused with plain ol' STOP orders, which are a GOOD idea).
A Day Order is an order that's good for the current trading day only.
A Good-Til-Cancelled Order is generally good until you cancel it. Sometimes, though, the broker places a limit on the duration of this, say, until the end of the month.
2007-03-10 18:32:40 · answer #2 · answered by LongArm 3 · 0⤊ 0⤋
stop-limit order
Definition
An order to buy or sell a certain quantity of a certain security at a specified price or better, but only after a specified price has been reached. A stop-limit order is essentially a combination of a stop order and a limit order.
Day order - Your order to buy or sell will only be into effect until the end of the trading day for the exchange.
Good-till-Cancelled order - your order to buy or sell will be in effect for up to 30 days (at least with my broker).
2007-03-10 18:31:30 · answer #3 · answered by gosh137 6 · 0⤊ 0⤋