Ok, no brown here...
But, with Datek you can place
Buy or Sell orders with:
-stop market
-stop limit
Where's the difference:
Both orders, stop market, and stop limit require a "stop Activation price", the price which triggers the activation of the order.
Once "activated", so, that the stop price has been met, the
-stop market order becomes a market order to buy/sell
-stop limit order becomes a limit order to buy/sell
So, the stop limit order requires the entry of 2 prices:
Example:
Yahoo trades at 146 3/8. I enter an order to sell 10 yahoo under 145 (enter the price in the "price field"):
-at market
Datek (classic order entry) returns:
"Sell 10 shares of YHOO (YAHOO INC) Stop Market Order with Activation Price at 145"
This is a Stop Market order, and may be activated depending on market activity. By confirming this order, you agree to abide by Datek Online policies concerning stop orders, explained in the online Helpdesk.
-with a limit of 144.50 (enter the activation price, 145 in the price field, and the stop limit in the rightmost field"
Datek (classic order entry) returns:
"Sell 10 shares of YHOO (YAHOO INC) Stop Limit Order with Activation Price at 145 Stop Limit Price at 144 1/2"
This is a Stop Limit order, and may be activated depending on market activity. By confirming this order, you agree to abide by Datek Online policies concerning stop orders, explained in the online Helpdesk.
There is quite some difference:
-a stop market order gets executed on the next possibility regardless of the bid price, hence the execution can be far away from the Activation price (can be...)
-a stop limit order with a limit price slightly under the stop price would let you bid in the vicinity of the stop price, but...in steep falls you may not get executed.
......
Reliability? I think yes, I have profited sometimes doing so (especially to cover shorts when I have no time to watch). |
