Limit orders
A limit order is an order that you enter, if you have a position on an exact price to buy or sell.
With a limit order you are sure of your price but not sure of the (full) version.
We illustrate with an example.
You have a position 400 shares and you want Google Google sell those 100 shares to 400 USD.
The Bid-Ask Google is 389.80 to 389.99.
The Bid is the price that the purchasing party provides. If this Bid price at 400 USD will be placed, then the position will be sold.
Provided however that there is sufficient volume. If the buyer wants to buy shares only 50 to 400 USD, the order will not be executed.
Usually the volume is no problem, unless it substantially over large volumes, which lay professionals in the market.
With a limit order, you are so sure of the price but never 100% sure of the (full) version of your order.
Another example
You want a position of 1,000 shares GDF Suez and taking it to 25.00 euros.
The Bid - Ask is 25.81 to 25.84. The Ask again which indicates how a vendor wants to sell shares.
The Ask price must drop to 25.00 euros before the position is performed.
Note, again, you are not 100% sure that the position will be fully occupied. The desired volume must govern these prices;
related posts
- Macd/Osma
- Osma Indicator
- Gator Forex
- Applying Elliott Wave Theory Profitably
- Forex Indicator System
A limit order is an order that you enter, if you have a position on an exact price to buy or sell.
With a limit order you are sure of your price but not sure of the (full) version.
We illustrate with an example.
You have a position 400 shares and you want Google Google sell those 100 shares to 400 USD.
The Bid-Ask Google is 389.80 to 389.99.
The Bid is the price that the purchasing party provides. If this Bid price at 400 USD will be placed, then the position will be sold.
Provided however that there is sufficient volume. If the buyer wants to buy shares only 50 to 400 USD, the order will not be executed.
Usually the volume is no problem, unless it substantially over large volumes, which lay professionals in the market.
With a limit order, you are so sure of the price but never 100% sure of the (full) version of your order.
Another example
You want a position of 1,000 shares GDF Suez and taking it to 25.00 euros.
The Bid - Ask is 25.81 to 25.84. The Ask again which indicates how a vendor wants to sell shares.
The Ask price must drop to 25.00 euros before the position is performed.
Note, again, you are not 100% sure that the position will be fully occupied. The desired volume must govern these prices;
related posts
- Macd/Osma
- Osma Indicator
- Gator Forex
- Applying Elliott Wave Theory Profitably
- Forex Indicator System
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