Memory Tricks for Orders
Sell limit orders and buy stop orders are typically placed over the market price. This can be remembered through the mnemonic
- • SLOBS: Sell Limit-Over the market-Buy Stop.
Buy limit and sell stop orders are typically placed under the market price. This can be remembered by the mnemonic
- • BLUSS: Buy Limit-Under the market-Sell Stop.
|
Types of Orders
|
Characteristics
|
|
Market Orders
|
- • Filled immediately at the best available price
- • Always filled
|
|
Limit Orders
|
- • Filled at a specific price or better
- • Used when not ready to buy or sell at the market price
- • Buy limits placed below market price
- • Sell limits placed above market price
- • Not always filled
|
|
Stop Orders (Stop-Loss Orders)
|
- • Turns into a market order when a trigger price is hit
- • Buy stops are used to protect short sale gains
- • Buy stops placed above market price
- • Sell stops are used to protect long sale gains
- • Sell stops placed below market price
- • Always filled
|
|
Stop-Limit Orders
|
- • Turns into a limit order when a trigger price is hit
- • Two important prices, trigger price and limit price
- • Buy st
|
Since you're reading about Series 65: Memory Tricks For Orders, you might also be interested in:
Please Enable Javascript
to view this content!
Top
