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August 21st, 2008, 05:18 AM
#1
Inactive Member
So I am looking at the numbers to make a triggered order and I'm still confused.
From tonight's "order example"
Is the LIMIT- the price the stock needs to exceed in order to be triggered?
Then what is the STOP?
Thank you in advance!!!
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August 22nd, 2008, 12:36 AM
#2
HB Forum Owner
I think Juan is right on with his explanation.
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August 22nd, 2008, 03:58 AM
#3
Inactive Member
Actually, this is how I understand it. The word "STOP" actualy means "TRIGGER". The STOP price is the amount at which point your Market Order is Triggered (or becomes live / active). The LIMIT is the maximum price that you are willing to pay for a stock. So if your STOP is $20 and your LIMIT is $20.50, you're telling the broker to enter your Market Order (To Buy or Sell) when the stock exceeds $20, but do not pay more than $20.50 for the stock. This gives you a 50-cent window in which you may end up paying for the stock. Hope that helps. If any one understands it differently, please share.
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August 22nd, 2008, 04:26 AM
#4
Inactive Member
Absolutely correct. I like to think of the word start better being thought of as the word "start" because its when the broker starts executing your order. The limit portion of the order is the maximum you'll pay (or minimum you'll receive for a sell short).
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August 22nd, 2008, 04:43 AM
#5
Inactive Member
Thanks to all who replied! It all makes sense to me now.
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