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Here in China, the national bank allows one to buy silver on something called RMB/SLV market. I'm given a bid and ask: at the moment both are around 5.7 RMB. I'd like to buy some silver, but I don't quite understand the options I am given. Several transaction methods are available:

  1. Market price, instant
  2. Limited price, instant limited price, price
  3. Profitable entrustment Entrustment price
  4. Stop-loss entrustment Entrustment price

Those are the 4 options. I understand the first one: it just means I buy at the current quoted price. However, can someone please elaborate on the other three? What are limited price and profitable entrustment price? The last 3 options allow me to input a number with up to two decimal points. Thanks for your insight.

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"Limited Price" is probably equivalent to the current par value of a "limit order". Markets move fast, and if the commodity is seeing some volatility in the buy and sell prices, if you place an ordinary buy order you may not get the price you were quoted. A "limit order" tells your broker or whomever or whatever is making the order on your behalf that you will pay no more than X yuan. While the market is below that price, the trader will attempt to get you the quantity you want, but if they can't get you your full order for an average price less than the limit, the whole thing is rolled back. You can set a limit at any price, but a limit order of 1 yuan for a pound of sterling silver will likely never be executed as long as the market itself is functioning. So, you are being provided with a "par value" that they can guarantee will be executed in the current market.

Entrustment prices are probably prices offered to the managers of trust funds. A trust is simply a set of securities and/or cash which is placed under the nominal control of a third party, who then must in good faith attempt to fulfill the goals of the actual owner of the securities with regards to growth or retention of value. Trustees almost never speculate with the money they control, but when they do move money it's often a sizeble chunk (hundreds of thousands or millions of dollars instead of a few thousand dollars here and there). So, in return for the long-term holdings, large buys and sells, and thus the reduced cost of maintaining a business relationship with the broker, the broker may offer better prices to trust fund managers.

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Correcting Keith's answer (you should have read about these details in the terms and conditions of your bank/broker): Entrustment orders are like a "soft" limit order and meaningless without a validity (which is typically between 1 and 5 days).

If you buy silver at an entrustment price above market price, say x when the market offer is m, then parts of your order will likely be filled at the market price. For the remaining quantity there is now a limit, the bank/broker might fill your order over the next 5 days (or however long the validity is) at various prices, such that the overall average price does not exceed x.

This is different to a limit order, as it allows the bank/broker to (partially) buy silver at higher prices than x as long as the overall averages is x or less. In a limit set-up you might be (partially) filled at market prices first, but if the market moves above x the bank/broker will not fill any remaining quantities of your order, so you might end up (after a day or 5 days) with a partially filled order.

Also note that an entrustment price below the market price and with a short enough validity behaves like a limit price.

The 4th order type is sort of an opposite-side limit price: A stop-buy means buy when the market offer quote goes above a certain price, a stop-sell means sell when the market bid quote goes below a certain price.

Paired with the entrusment principle, this might mean that you buy/sell on average above/below the price you give.

I don't know how big your orders are or will be but always keep in mind that not all of your order might be filled immediately, a so-called partial fill. This is particularly noteworthy when you're in a pro-rata market.

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