Let's say I have shares of XYZ whose current value is $100.
If I want to limit losses, I can automatically trigger a sale if the price goes below $90, so I place a SELL order of type STOP for $90.
If I want to lock in gains, I can automatically trigger a sale if the price goes above $110, so I place a SELL order of type LIMIT for $110.
My broker, Scotia iTrade, lets me have one of the above open orders, but not both, giving me the message:
"Your Account does not hold sufficient shares of this security. Please check your open orders"
I know both orders can't go through, but it still seems logical to me to have them both open. Is there a reason why I can't have both orders open? Is there a workaround to achieve the goal of limited losses OR locking in gains depending on where the market goes?