Replies to post #3963 on Extreme Deviation Automatic Price Targeting - "X_D (BTC-USD)

[Jimbob]

Dick, you said "but what if it hit my limit price, but dropped back down before my order could be executed. It would not sell."

In this case you might want to consider a stop market order. That way if price hits your target price the order is executed at the current market price either above or below your trigger price. This can be risky though. Market makers play games with the stock prices when they see a lot of orders on the books. There are books out there that exlplain what they do. From my research it is safest to only use limit orders. I have been burned numerous times.

If this is not the answer your looking for let me know and I will try again.

JimBob
http://www.vestorAnalytics.com

[Lou Dina]

rrochon,

Below is some info I got from the Vanguard site about market, limit, stop, and stop-limit orders. Personally, I use limit orders or market orders.

From Vanguard
What is the difference between market and limit orders?
A market order is an order to buy or sell immediately at the best available price, whatever it is. A limit order is an order to buy or sell at a price you specify or better, but there is no guarantee that it will be executed.

What is the difference between stop and stop-limit orders?
You can use stop orders and stop-limit orders to help protect your profits and minimize losses, especially during periods of high market volatility. A stop order is an order to buy or sell at the market price, once a security has traded at, or passes, a price you specify (called the stop price). A stop order to buy is always entered at a price above the current offer price; a stop order to sell is always set at a price below the current bid price. The risk of stop orders is that they may be triggered by temporary market movements or may be executed at prices higher or lower than the stop price.

A stop-limit order combines a stop order and a limit order. A stop-limit order is an order to buy or sell at a specified price (called the stop-limit price) or better, but only after a given stop price has been reached or passed. This allows you to buy the stock no higher than the stop-limit price, or sell it no lower than the stop-limit price. The risk of a stoplimit
order is that the stock may never trade at the stop-limit price.

Lou

[lostcowboy]

http://www.sec.gov/answers/limit.htm http://www.lectlaw.com/def2/s078.htm

Hi, Looking at the second link, price gaps do not apply to sell limit orders. They do apply to stop loss sell orders. A stock could gap down and not trigger the stop loss. But if the price ever goes above the sell limit order, a sell will be triggered at the current price, but you have to stand in line. Say he has 1000 sell limit orders at $10.00, but there are no buyers at $10.00, the first guy will get $10.00, but each order after that will be for a lower price. Because the market maker(specialist) is having to do the buying, and he will keep cutting the price until he gets some buyers to come into the market.