Series 66: 6.5.1.5. Memory Tricks For Orders

Taken from our Series 66 Online Guide

6.5.1.5. 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.

SUMMARY TABLE

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 if triggered 

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