Talk:Order (exchange)

From Wikipedia, the free encyclopedia

You have new messages (last change).

[edit] Stop order

"A stop order (sometimes known as a stop loss order) is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the specified price is reached, the stop order is entered as a market order. "

This is not exactly true. We use stops in futures. In that case it is not an order to buy or sell a stock. GT

"Stop orders are designed"

Designed by whom. Stops were probably developed by exchanges to make more profits just like every other investor innovation. It is misleading and untrue. Will someone please clean this up? GT

"to limit an investor's losses in the event of an unexpected drop in the price of a security."

If the previous line is true "buy or sell," then a stop to buy, would not protect speculators or investors from a drop. They could have been short. The stop is protecting from a rise. This stop order explantion is to restrictive and one sided. What does it mean when the floor runs the stops? GT

Thanks for your comments. Next time, it would be great if you timestamp your post. Simply use --~~~~ . Thank you!

The philosophy of wiki is to encourage all people to edit and improve the article. Please be bold in updating articles. :)

I may try to work on it soon.--Wai Wai (talk) 21:58, 29 July 2006 (UTC)

[edit] Stop-Limit purpose

Why should I make a stop-limit order? Full Decent 15:51, 4 October 2006 (UTC)

Because of short-term market fluctuations. It might be easier to consider a scenario. Let's say that you put in a regular stop order to sell a security when the price drops below $10/share. At 12:48 on Monday, the price drops to $9.85. Your stop order now kicks in and will be executed in minutes or hours (depending on the service level offered by your broker). During that time, the price continues to move. When the broker finally makes the trade, he/she will do so at whatever price is available at that time, regardless of whether the price of the stock has already rebounded back into the range that you considered acceptable or has already plummetted to nothing. With a stop-limit order, you can set more specific guidance on how the broker should act for you. Rossami (talk) 17:06, 4 October 2006 (UTC)
Retrieved from "http://en.wikipedia.org../../../o/r/d/Talk%7EOrder_%28exchange%29_e535.html"