Small Cap Investment

Setting Limit Trades

posted by World Business & Personal Views @ 9:39pm, Sunday 20 February 2011.

Limit trades have to be the easiest trading of stock shares. What limit trading allows is a easy way in which you can set a price to sell off shares or buy share at a particular set price.

When selling off stock shares you can set the price in which you plan to exercise a sell off of owned stock, when the price either reaches that level if it is up at the price set or it will automatically sell at the set price and n higher or lower.

Buy Limit trading will automatically purchase shares of stock when the price you set is reached but until the seller either agrees to the limit or the stock drops in value the order will either set till filled depending on the time limit you have set the limit trading for. There are a few options in this for limits on time you are allowed to keep a limit but open.

With Etrade Securities they have a fill or kill option. With a fill or kill order placed you either fill the order immediately or the order is canceled.
Day order is where the order will remain open and good to fill until the end of the trading day, after the day has completed the order is canceled.
30 Day Limit gives you 30 days to either fill the order at the set price and again like the day order if the order isn't full filled in 30 days it is canceled unless it is renewed. There is also a 60 or 90 day limit option and as well a until canceled.

I tend to use the day to day unless I know the stock is looking really positive and has some significant news, then I might put up a 30 day time limit with a double or 150% price to sell it off. Each person has there profit limits and as well there willing to lose limits.

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