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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (2489)	1/31/1998 11:17:00 AM
From: Dale Baker	Read Replies (2) \| Respond to of 4969

Correct unless you set a STOP LIMIT order, under which the broker can only sell (or buy to cover) at the exact price you specified. I only use stop limits now, so an eager MM can't convert my sudden market order into a huge loss without my knowledge. Remember, the "market" at that instant may be whatever an eager MM wants it to be, especially in a lightly traded NASDAQ stock. The risk is that a stock falls or jumps so fast that your stop order gets skipped over. So far I have found that to be pretty rare. And I sleep much better knowing that I have clearly limited my potential losses in advance.