We're pleased to announce an update is coming to the community boards.
Sunday, September 25th: We are migrating the boards to a new platform. The site is currently in read-only mode and we will bring it back online as soon as the migration is complete.
This board has been migrated to our new platform! Click below to continue the discussion on the new site.
<<I understand what a LIMIT order is, but what is a STOP-LIMIT order. How and why would you use one. For that matter, what is a STOP order or a STOP LOSS (same thing?)>>In our FAQ area (at: http://www.fool.com/foolfaq/foolfaq.htm) there's an explanation of vearious orders (http://www.fool.com/FoolFAQ/FoolFAQ0028.htm).Here's what it says on Stop-Limits:Stop Limit Order - A specialized order in which a limit order and a stop order are combined. Once the specified stop price has been reached or exceeded, the stop-limit order becomes a limit order. A stop-limit order differs from a stop order, which becomes a market order when the stop price has been reached or exceeded. A stop-limit order to buy must have a stop-limit price above the market price; conversely, a stop-limit order to sell must have a stop-limit price below the security's market price. In response to a stop-limit order specifying "sell 100 GY 70 stop limit," once the stock sells at or below $70, the order becomes a limit order to sell 100 shares at a price of $70. A variation of the stop-limit order specifies a limit price lower than the stop price.Selena
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |