RE: Stop Orders: Market vs. Limit

["neo" <neo1@xxxxxxxxx>]

Claud

I realize that the stop order must be at a price not a %. What I do not
understand is "if the stock hits 45". Exactly what price determines if a
stock hits 45?

Thanks, neo


~  -----Original Message-----
~  From: owner-metastock@xxxxxxxxxxxxx
~  [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Claud Baruch
~  Sent: Tuesday, September 04, 2001 9:26 PM
~  To: metastock@xxxxxxxxxxxxx
~  Subject: Re: Stop Orders: Market vs. Limit
~
~
~  Neo,
~
~  You can't place any stop, limit, stop limit, at a percentage. It MUST
~  be at a specific price that YOU designate. If stock is trading at
~  46 and you put in a stop at 45, that order becomes a market order
~  if the stock hits 45.
~  If you say sell at 45 stop limit, you want to sell if the stock hits 45
~  BUT you will only accept an execution at 45 or better. No guarantee
~  that your order will be executed.
~  If you place a limit order at 45, and the stock is trading at 46, you'll
~  receive an execution at 46 or possibly slightly more/or less.
~
~  Claud
~
~  neo wrote:
~
~  > 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
~  > ~
~