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To: Tom R. who wrote (1862)1/24/1999 6:04:00 AM
From: De Peepster  Read Replies (5) | Respond to of 5300
 
Dear Tomster,
A Limit Order is an order to buy or sell a security at a specific price or better. For buy orders, the limit price is placed at or below the current ask price. For a sell order, the limit price is placed at or above the current bid price.
A Stop Order is an order to buy or sell at the market price once the security has traded at a specified price called the stop price. A Stop Order to buy is always at a stop price above the current ask price and is designed to help protect a profit or limit a loss on a short sale. A Stop Order to sell is always at a price below the bid price and is designed to protect a profit or limit a loss on a security held long. The risk of a Stop Order is that it may be triggered by temporary market movements or executed at a price higher or lower than the stop price because of market orders placed ahead of it.
Please Note: During fast market conditions they do not work as a defensive measure to "lockin" a specific price.
Have a great Sunday,,, L & S WCTI,, Barbara
CAARUNNCHHHHH
P.S. Daniel please let Ron know that I wish him/her the best and I am sorry that he/she feels that I am spooky ;).