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If I own a stock that trades at 100$, and I want to sell the stock if it either goes to 95$ or below and also if it goes to 105$ or above, is it possible to do so? Do I need to use a stop order or a limit order?

  • You're asking a lot of questions. Could you try and pick better tags? This question has nothing to do with stock analysis, for example. – Chris W. Rea Apr 30 '13 at 22:22
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    @JoeCoderGuy - have you heard about Guaranteed Stop Losses. Also you can have a stop-limit order as JB has mentioned or a stop-market order. – Victor May 1 '13 at 7:07
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    @JoeCoderGuy - what are you talking about? A GSL is basically a market stop loss order which you pay a premium (extra fee) in order to get executed at the price you specify in your GSL. The whole point of a stop order is that you want to be filled, so your statement doesn't make any sense. If you put a simple stop-market order you will get filled at the next market price after your stop gets triggered. Sounds like you don't know much about these type of orders from your comments. – Victor May 1 '13 at 19:53
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    @JoeCoderGuy - you pay an extra fee for a GSL, usually 0.1% extra on the value of you order. It is something you should consider using or not using in your risk management strategy. – Victor May 1 '13 at 20:27
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You need to use one of each, so a single order wouldn't cover this:

The stop-loss order could be placed to handle triggering a sell market order if the stock trades at $95 or lower. If you want, you could use a stop-limit order if you have an exit price in mind should the stock price drop to $95 though that requires setting a price for the stop to execute and then another price for the sell order to execute.

The limit sell order could be placed to handle triggering a sell if the stock rises above $105.

On the bright side, once either is done the other could be canceled as it isn't applicable anymore.

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    Some brokers allow "group" orders, such that when one is executed all other orders are cancelled. – assylias Apr 30 '13 at 22:52
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    It is called an OCO - One Cancel Other order, so you can place a stop loss order and a profit target order and whichever gets triggered would cancel the other. – Victor May 1 '13 at 7:05

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