Day and GTC Orders and Extended Hours Trading
Comments OffWhen you place an order, you must give it an expiration date. Day orders are good until the end of the trading day, at which point they are cancelled; all market orders are placed as day orders. Good-till-Cancelled (GTC) orders, however, remain open until one of three things occurs: 1. They are completely filled 2. [...]
Selling Short and Buy to Cover Orders
Comments OffAs you learnt in The Basics , selling short is an extremely speculative practice that can, theoretically, lead to unlimited losses. Here’s how it works: You think that Company ABC is grossly overvalued. Management is terrible, financial condition is deteriorating, the sales outlook is pitiful, and, you believe, the stock price does not fully reflect [...]
All Or None
Comments OffNormally, when you purchase a substantial amount of a company’s common stock, your broker will fill your order over the course of several hours, days, or even weeks, as opportunity arises. This will prevent you from “moving the market” – or drastically increasing (decreasing) the price of the stock by flooding the market with a [...]
Stop Order and Stop Limit Orders
Comments OffIn common parlance, stop and stop limit orders are known as “stop loss” orders because speculators use them to lock in profits from profitable trades. A stop order automatically converts into a market order when a predetermined price is reached (this is referred to as the “stop price”). At that point, the ordinary rules of [...]
Types of Market Orders
Comments OffThe simplest and most common type, market orders simply tell your broker that you are willing to take whatever price is presented to you when your order is executed. These orders are often subject to the lowest commission since they are the easiest to execute. Imagine you want to buy 100 shares of Apple Computer, [...]
