bobiene
1 Answer
Chiangmai
The name "stop limit' is not as complicated as the name suggests.
When you want to put a stop loss to your Apple stock, say $335. When Apple stock drops to $335, your sell order has just become a market order. Hence, it becomes the market order for the next "sell". It could sell for higher or lower than $335 depending on the market condition.
On the other hand, a "STOP LIMIT" order is an order that, when Apple hits $335, a limit order kicks in: say $335.25. It now has become a limit order unlike the earlier example which is a market order.
| 14 years ago. Rating: 1 | |
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