A limit order specifies the price you're willing to pay, though there is no guarantee that some or all of the order will trade if you haven't named a price other traders want. Stop orders are a type of market order triggered when a stock moves above or below a certain price. Once ...
Why would a trader choose one of the stock order types (Market or Limit) over the other. It really comes down to a trader's strategy. Some exit strategies call for the use of only Limit Orders. For instance a trader might use a Market Order or Buy-Stop Order (this one's coming up...
There are three basic kinds of stock orders: market orders, stop orders and limit orders. Stop orders must be combined with market or limit orders, so traders can create "stop market" and "stop limit" orders. But there is no such thing as a "market limit" order. Market Orders Market o...
Stop loss and stop limit orders provide ways for investors to enter and exit the market without being fully present. ExclusiveWhat It Means to Be 'Out-of-the-Money' – Options Trading Stop loss orders guarantee that a trade will be executed but cannot guarantee the exact price of that trade...
Market orders can be risky, though, as the bid or ask could move right as you place a trade, changing your price. You can also try to control the price you buy or sell at using a stop order, a limit order, or another more sophisticated order type. Why do people participate in the...
A market has the following limit orders standing on its book for a particular stock:Ian submits a day order to sell 1,000 shares, limit £19.83. Assuming that no more buy orders are submitted on that day after Ian submits his order, what would be Ian’s average trade price? A.£...
A market has the following limit orders standing on its book for a particularstock. The bid and ask sizes are number of shares in hundreds.What is the market? A. 9.73 bid B. offered at 10.14. C. 9.81 bid D. offered at 10.10. E. 9.95 bid F. offered at 10.02. ...
Order-driven MarketOrder PlacementOrder PerformanceThis paper uses an order data set to analyze trading by limit versus market orders on the Saudi Stock Market. Building on the literature on a trader's choice prdoi:10.2139/ssrn.271450Mohammad Al-Suhaibani...
Limit Orders A limit order allows you to specify the maximum price you're willing to pay when buying, or the minimum price you’re willing to accept when selling. Unlike market orders, limit orders are not guaranteed to be filled immediately. The bid-ask size is important for whether and ...
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