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| Market
Order |
| When you place a market order you are instructing
your broker to execute the desired transaction at the prevailing market
price. Market orders are particularly valuable in that they are
executed rapidly at a price close to the last sale price. |
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| Limit
Orders |
| Are used when you indicate to your broker the price at which you wish
the order executed. These orders are placed "away from the
market," in that the broker leaves the order with the specialist
assigned to the particular stock. If and when the limit order is
executed, the specialist informs your broker, who in turn relays that
information to you. The limit order on the buy side is always
placed at a price below the current market. A sell limit is above the
current price. |
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| Stop
Order, or stop loss order |
| Stop Order, or stop loss order, specify a particular price at which a
sock should be bought or sold, A buy stop is always above the
current market and a sell stop is below. When the issue reaches the
specified price, the stop order automatically becomes a market order and
is executed. |
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| Stop
Limit Orders |
| Stop limit orders are a hybrid form of stop and limit orders. A
specified limit is indicate that the buyer or seller will accept should
the sock reach the sop price. for instance, an investor wishes to sell
100 shares of HWP at 91 stop, limit 90. In other words, if the
price of HWP falls to $91 per share, his stop order becomes a market
order to sell. But if the order |
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not executed by the time the sock reaches 90, the limit order take
effect and no transaction takes place. |
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| Day
Order |
| Day Order
are orders that are only good for one day. If it has not
been executed, the order expires at the end of the day on which it was
placed. Note all market orders are day orders. |
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| GTC
Orders |
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GTC orders ( good till canceled run can or open for ever. However,
not all brokerages honor this, some may do three months or more).
The NYSE requires that all GTC orders be confirmed with the floor
specialist on a semiannual basis.
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| Bid
Price |
| Bid price - Is the price at which a market maker is willing to
purchase a specified quantity of a particular security, or the price
that the specialist is willing to buy the security from the commission
broker whom is working for the customer. |
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| Asking
Price |
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Asking price - The price at which a market maker is willing to sell
a specified quantity of a particular security. In this case it is
the price at which the specialist is willing to sell the specified
security to the customer through the broker.
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