RE: Stop Orders: Market vs. Limit

["neo" <neo1@xxxxxxxxx>]

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
~  > ~
~