Re: 2+2 Stock Trading Competition
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Hi Zephed,
Here is an example. Say you buy stock at $10 a share. You can set a stop loss below the market. Let say $8 stop loss. If the stock trades at $8 or lower; your stop loss immediately becomes a market order to sell your shares at the current market price.
Now let's say you have a profit target of $15 for the same stock. You can enter a limit order to sell at $15. This order will only be executed if the market trades at $15 or higher. You are guaranteed to get your price IF the limit order is executed.
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So I can have both operations simultaneously working on a single stock then. Thanks!
If I want to sell at a lower bound (I understand it doesn't sell at exactly that price always), I use the sell + stop action.
If I want to sell at a certain upper bound, I use the sell + limit function.
That makes sense. I'm a retard.
Also, you say IF the order is executed. What sorts of events will cause a stop or limit order to not be executed?
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