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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Mammon who wrote (10098)	11/11/1998 4:20:00 PM
From: Kevin McKenzie	Read Replies (1) \| Respond to of 119973

What's the difference between a stop loss and a stop limit order? Briefly stop loss order becomes a market order when the stop price is breached. Stop Limit becomes a limit order when the stop price is breached. Stop Loss order becomes a market order when your target is reached. For example, EGGS is trading at 13 1/2 and you put a stop loss order of 13 1/8, as soon as shares are traded at 13 1/8, your order immediately becomes a market order. So your fill is whatever the MM's can get. EGGS might drop to 12 1/2 before you're filled (in an extremely fast market). You are also guaranteed a fill. Stop Limit order becomes a limit order when your target is reached. When you place a stop limit order, you must specify your stop price and your limit price. So if you placed a stop limit order on EGGS you might put a stop price of 13 1/8 and a limit of 13. This means if Eggs sells for 13 1/8, I want to sell my Eggs, but for no less than my limit (of 13). So if your stop price is reached, your order becomes an order to sell at a price of 13 or better. So in the same example, if EGGS hit your 13 1/8 stop price then kept going down, you might not get a fill, because the bid might be below your limit of 13. One of many great investment terminology sites: wallstreetcity.com