18
votes
Accepted
Why use a stop-limit order instead of a limit order?
Stop orders wait until a particular (adverse) condition is met before turning into a limit order.
On the sell side:
If the price is currently $40 and you submit a limit order to sell at $36, it will ...
- 15.1k
14
votes
Why use a stop-limit order instead of a limit order?
The investopedia article gives a decent example:
For example, assume that ABC Inc. is trading at $40 and an investor wants to buy the stock once it begins to show some serious upward momentum. The ...
- 131k
6
votes
Accepted
Why didn't a margin call prevent me from losing more than my initial investment when buying on margin?
Buying on margin refers to buying of securities with cash borrowed from a broker with securities acting as collateral, covering a portion of the risk of the position. This use of margin magnifies the ...
- 75.8k
6
votes
Why not have stop loss orders on all your stocks?
If you own stock XYZ (not a real stock) and it goes down is that a reason to sell? If you view the price of a stock to be a random walk, the fact it has gone down does not mean the pattern will ...
- 1,540
4
votes
Should I Use a Limit or Stop Limit Order to Sell a Position Once It Reaches Price Objective
Not exactly the same:
a limit order executes in the first trade at or above your limit;
a stop limit order executes in the first trade after the first trade at or above your limit. This trade could ...
- 37.6k
4
votes
Can you set a stop loss as a percentage of the current value of your investment, rather than the initial deposit?
If your broker offers it, you can place a Sell trailing stop order. It sets the stop price at a fixed amount below the market price with an attached "trailing" amount. As the market price ...
- 75.8k
3
votes
Why not have stop loss orders on all your stocks?
Here’s an example from my own lived experience:
A couple of years ago, I purchased a number of shares of Tesla at about $300/share with the underlying investing thesis that the world was turning a ...
3
votes
Why was my Stop Limit Sell Executed?
Even though you don't see a price below 260 using your data source, your data source may not include every market transaction, including the one that stopped you out.
3
votes
Accepted
Do stop orders get triggered by stock splits?
Corporate events such as a cash or stock dividend do not trigger orders. FINRA Rule 5330 provides for the adjustment of open orders:
Adjustment of Orders
(a) A member holding an open order from a ...
- 75.8k
3
votes
Schedule to sell a stock when it reaches a higher price (though not guarantee to sell it at that price)
A Conditional Order allows one to attach one or more stipulations that must be true before the order can be submitted.
Conditions can be any combination of price, time and volume along with ...
- 75.8k
2
votes
Stop Limit Order
You're talking about a 'stop limit price', but a stop limit order has two prices, a 'stop price' and a 'limit price'. If the 'stop price' is reached (during the day, or in the morning while opening, ...
- 953
2
votes
Schedule to sell a stock when it reaches a higher price (though not guarantee to sell it at that price)
Limit orders are executed only if the market price reaches the limit price or goes higher. It is a little more complicated in fast moving markets, which you can read about here, Trade Execution (SEC).
...
- 3,771
2
votes
Do market makers try to take out stop orders?
Most exchanges do not directly support stop orders, and even if they did, exchanges would not disclose these orders in their market data feed until they had been activated (i.e. the stop price had ...
- 5,083
2
votes
Do market makers try to take out stop orders?
I think that the theory that market makers take out stops in order to screw people is an excuse that people make for placing a stop order that gets executed. The fact that it occurred at the exact ...
- 75.8k
2
votes
Accepted
Can a Trailing Stop Limit order extend the upside?
No, the stop order will go into effect immediately. If the stock drops $10, the stop will be triggered, even if the stock did not reach $150 first. Since you don't want a stop to occur in that case, ...
- 29.4k
2
votes
Why do I need Stop-Loss order in Forex?
“Need” isn’t a particularly helpful way to look at this.
People can trade FX without stop-loss orders, so such orders are not a matter of need, but more of an available service.
If you are prepared to ...
- 9,332
1
vote
Triggering a conditional sell order on the bid price
I finally understood what happened and why my ingrained belief that if a transaction happens at time t, then necessarily
bid price(t)=ask price(t)=mark price (t)=last price(t) was wrong. I have not ...
- 143
1
vote
Stop limit orders are being filled immediately
A stop (limit) sell order means "execute this order if the price goes below X". For a sell, that price is the bid. So your stop at 0.35 would be executed because the current bid (0.34) is ...
- 131k
1
vote
Why do I need Stop-Loss order in Forex?
Yes, it is possible. Just that you need an entry point close enough of the moment the market will reverse or right after it has reversed(you being on the market side). And, of course, you need money ...
- 111
1
vote
Why do I need Stop-Loss order in Forex?
I mean, the risk looks very small, simply because it never happens that the currecncy of big economies loss its values forever.
With low risks (only trading amongst the big economies) comes low ...
- 50.6k
1
vote
Can you explain Trailing Stop Orders?
It's spelled out clearly in your link. For every penny the stock rises, the stop price rises one penny. If it drops to the trailing stop price, a sell order is generated (for a long position).
Step ...
- 75.8k
1
vote
What type of orders fit my strategy in a way that two triggers might be needed?
Quoting @Fattie:
Those orders (beyond the basic ones) are a feature of the software of your broker.
Here's a broker that offers over 50 types of orders for stocks. See if one of them suits your ...
- 75.8k
1
vote
What type of orders fit my strategy in a way that two triggers might be needed?
Welcome new users, just give one piece of information,
Note that the "type of orders available" depends on your broker.
Those orders (beyond the basic ones) are a feature of the software ...
- 13.8k
1
vote
Can puts work as stop losses?
A long put that protects a security isn't really a stop loss because you remain in the security. It's a limit the loss strategy.
The put has several drawbacks:
It's a wasting asset
Its delta is ...
- 75.8k
1
vote
Use-cases for stop-limit order where stop price is lower than limit price on Sell Order
I struggle to see a use case where you would want to sell for 46 or higher, but only if the price was below 45 before - if you are happy to sell for 46 you could just do it without the stop.
Unless ...
- 37.6k
1
vote
Use-cases for stop-limit order where stop price is lower than limit price on Sell Order
The purpose of a sell stop limit order is to sell when price drops to a specific price. The higher stop price activates the limit order. The attached limit price is the lowest price you're willing ...
- 75.8k
1
vote
Buying To Cover And Protecting Profits from Short Sell
Fidelity is rejecting your order because you are using the wrong type of order.
A buy stop limit is used to buy if price hits a specific point. It specifies the highest price you're willing to pay. ...
- 75.8k
1
vote
Should I Use a Limit or Stop Limit Order to Sell a Position Once It Reaches Price Objective
I would consider the possibility of using a trailing stop order. It would protect gains and allow the trade to remain open, enabling additional profit if the security continues to move in your favor....
- 75.8k
1
vote
Stop limit sell order doubt
Your interpretation is not correct. A limit sell order means sell at that price or higher. So once the stop price is reached, your order becomes a limit sell at $130, which will be triggered ...
- 131k
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