Stop-Limit Order Example. Let's say you bought stock ABC at $50 per share. You don't want to lose more than $5 per share, so you set a stop-limit order for $45. If the stock dips to $45, the stop price triggers a limit order to sell at $45. A limit order is an order to buy or sell a security at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Example: An investor wants to purchase shares of ABC stock for no more than $10. When you’re buying (or selling) a stock, most brokers interpret the limit order as “buy (or sell) at this specific price or better.” For example, presumably, if your limit order is to buy a stock at $10, you’ll be just as happy if your broker buys that stock at $9.95. Example: Suppose you own 100 shares of Bank of America (BAC) and you are looking to sell them if the stock's price falls a bit lower. Assume BAC is currently trading at $45 per share. You place a Sell Stop Limit Order for $41 on BAC, with a Limit (minimum you're willing to accept) at $40. For a LIT order, there is a trigger price and a limit price. For example, assume a stock is trading at $16.50. A LIT trigger could be placed at $16.40. In addition, a limit price of $16.35 could be set. If the price moves to $16.40 or below, the trigger price, then a limit order will be placed at $16.35.
You would like to sell the shares and take your profits if the stock's price reaches $50 per share, as you feel the stock's price is not going to go much higher than $50. You place a Sell Limit Order @ $50 on 100 shares of TGT. Now suppose the price trades up to $50. As long as the price remains above $50 per share,
For example, assume that Apple Inc. (AAPL) is trading at $170.00 and an investor wants to buy the stock once it begins to show some serious upward momentum. The investor has put in a stop-limit order to buy with the stop price at $180.00 and the limit price at $185.00. You would like to sell the shares and take your profits if the stock's price reaches $50 per share, as you feel the stock's price is not going to go much higher than $50. You place a Sell Limit Order @ $50 on 100 shares of TGT. Now suppose the price trades up to $50. As long as the price remains above $50 per share, Stop-Limit Order Example. Let's say you bought stock ABC at $50 per share. You don't want to lose more than $5 per share, so you set a stop-limit order for $45. If the stock dips to $45, the stop price triggers a limit order to sell at $45. A limit order is an order to buy or sell a security at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Example: An investor wants to purchase shares of ABC stock for no more than $10. When you’re buying (or selling) a stock, most brokers interpret the limit order as “buy (or sell) at this specific price or better.” For example, presumably, if your limit order is to buy a stock at $10, you’ll be just as happy if your broker buys that stock at $9.95.
The stock is currently trading at $51, so you set a limit order to buy at $50. The price may go up or it may go down, but you know that as soon the stock trades at $50, your order will be triggered and you'll buy at your predetermined price. Once you buy ABC at $50, let's say you decide you want to sell at $53.
An example of a sell limit order is an investor who holds a stock that trades for $20, but doesn’t want to sell it for anything less than $22. The investor can place a limit order to sell the stock at $22. In the above example, the order instructions are too short TEL once the stock price breaks $61 with a limit price at $61.87. Again, as mentioned in the previous example, if you simply place a limit order to sell the stock short at $61, the order would execute as the stock is bidding at $61.25.
For example, you might place a sell stop-limit order to have a stop price at $30 and a limit at $25. This means that when the price of the security drops below $30, a market order is entered to sell your position.
Stop-Limit Order Example. Let's say you bought stock ABC at $50 per share. You don't want to lose more than $5 per share, so you set a stop-limit order for $45. If the stock dips to $45, the stop price triggers a limit order to sell at $45. A limit order is an order to buy or sell a security at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Example: An investor wants to purchase shares of ABC stock for no more than $10. When you’re buying (or selling) a stock, most brokers interpret the limit order as “buy (or sell) at this specific price or better.” For example, presumably, if your limit order is to buy a stock at $10, you’ll be just as happy if your broker buys that stock at $9.95. Example: Suppose you own 100 shares of Bank of America (BAC) and you are looking to sell them if the stock's price falls a bit lower. Assume BAC is currently trading at $45 per share. You place a Sell Stop Limit Order for $41 on BAC, with a Limit (minimum you're willing to accept) at $40. For a LIT order, there is a trigger price and a limit price. For example, assume a stock is trading at $16.50. A LIT trigger could be placed at $16.40. In addition, a limit price of $16.35 could be set. If the price moves to $16.40 or below, the trigger price, then a limit order will be placed at $16.35.
For example, let's say a trader owns 1,000 shares of ABC stock. They purchased the stock at $30 per share, and it has risen to $45 on rumors of a potential buyout. The trader wants to lock in a gain of at least $10 per share, so they place a sell-stop order at $41.
For a LIT order, there is a trigger price and a limit price. For example, assume a stock is trading at $16.50. A LIT trigger could be placed at $16.40. In addition, a limit price of $16.35 could be set. If the price moves to $16.40 or below, the trigger price, then a limit order will be placed at $16.35. An example of a sell limit order is an investor who holds a stock that trades for $20, but doesn’t want to sell it for anything less than $22. The investor can place a limit order to sell the stock at $22. In the above example, the order instructions are too short TEL once the stock price breaks $61 with a limit price at $61.87. Again, as mentioned in the previous example, if you simply place a limit order to sell the stock short at $61, the order would execute as the stock is bidding at $61.25. For example, you might place a sell stop-limit order to have a stop price at $30 and a limit at $25. This means that when the price of the security drops below $30, a market order is entered to sell your position. Stop loss and stop limit orders are commonly used to potentially protect against a negative movement in your position. Learn how to use these orders and the effect this strategy may have on your investing or trading strategy. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you