Stocks Stop Limit Order
Confused with Stock “Limit Orders” and “Stop-Limit Orders.”?
I need help with these two stock order types – limit and stop-limit. I am confused by which order type to use; and when should I use that particular order type?
Please provide answers based on the examples below.
Sell Example:
Let’s say I have $4,000. I invest it in a company that is currently at $0.26. I purchase the stock and want to sell it that day or the next day. I want to sell my stocks for $0.30 or higher. What would be the difference if I chose a stop-limit order instead of a limit order and vice versa?
Buy Example:
I have $10,000 to invest in stocks. I want to purchase a stock (current value: $10) for $9 or less. Which stock order type would I use for this, and why would I use that order instead of another?
Thanks. I look forward to reading your replies.
1. to sell it $0.30 or higher you can use limit order.
Stop limit order can be used if you want to sell it lower than $0.26 ( to cut loss ).
2. you can use limit order.
You can use stop limit order, if you want to buy only after the stock price rearches $11 ( higher than the current value )
Type and size of orders in the Stock Market 1: An Introduction