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    Stop Limit PDF

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    Nazzta allez

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    © All Rights Reserved
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    Stop Limit PDF

    Uploaded by

    Nazzta allez
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    Stop Limit.pdf

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    266 views5 pages

    Stop Limit PDF

    Uploaded by

    Nazzta allez

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    © All Rights Reserved
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    At a glance
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    The key takeaways are that a stop limit order combines a stop order with a limit order to allow traders to limit losses and protect gains. It triggers a limit order to sell a stock once the stop price is reached to avoid further losses.

    A stop limit order is triggered to place a limit order to sell a stock once the stop price is reached. It works by setting both a stop price and limit price. Once the stop price is breached, it places a limit order to sell at or above the limit price to capture gains or limit losses.

    Stop limit orders offer the advantage of automatic order execution once the stop price is reached without constant monitoring. It forces traders to decide an exit point before prices drop and allows decisions with less emotion. They can be used to both limit losses and capture gains.

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    Stop Limit

    Stop Limit Explained


    A Stop Limit order is similar to a Stop Loss order that it
    allows you to limit your losses as well as protect gains
    on profitable positions. However, it allows for a
    specific limit price entry determined by the
    trader/investor.
    Stop Limit
    A Stop Limit order will be executed at a specified
    price (or better) after a given stop price has been
    reached. Once the stop price is reached, the Stop
    Limit order becomes a limit order to buy (or sell)
    at the limit price or better.

    What is a Stop Limit The stop limit order can be used


    for Canadian and US listed
    Order?
    symbols. It can also be used to
    Stop Limit Explained capture your gains.
    A Stop Limit combines a Stop order with a Limit
    order. A stop order is an order that is held until
    a specified price (stop price) is reached. When
    Stop Limit Buy vs. Sell
    that price is reached, the sell order is
    automatically triggered as a limit order that is
    then sent to the exchange. At that point, the
    Stop Limit (Sell)
    Limit order will remain active until the order Are orders that become booked limit orders
    executes (up to 30 days at a time). when a board lot is traded at or below the
    trigger price on the marketplace to which the
    The investor is able to set the price at which the
    order has been booked.
    stock would be sold for; however, it is not
    guaranteed that the order will be fulfilled.
    Scotia iTRADE offers up to 30 days in the future
    Stop Limit (Buy)
    to hold the order, after which the order will
    expire if not fulfilled. Are orders that become booked limit orders
    when a board lot is traded at or above the
    Stop Limit orders offer the advantage of
    trigger price on the marketplace to which the
    providing protection against losses with an
    order has been booked.
    automatically executed order. This doesn’t
    require constant monitoring by the trader.
    When a trader uses a Stop Limit order, he or
    she is forced to consider the exit point before
    the price drops; allowing the trader to make the
    risk management decision with less emotion
    and more discipline.

    2 Stop Limit | Scotia iTRADE


    EXAMPLE
    XYZ is trading at $13.00 and an investor wants to sell the stock once it begins to
    show some downward movement. The investor has put in a stop-limit order to
    sell with the stop price at $11.40 and the limit price at $11.30. If the price of XYZ
    moves below the $11.40 stop price, the order is activated and turns into a limit
    order. As long as the order can be filled at or above $11.30 (the limit price), the
    trade will be filled. If the stock gaps below $11.30, the order will not be filled.

    Stop Price: 11.40

    Limit Price: 11.30

    *The above example is for educational purposes only and not to be interpreted as a recommendation.

    3 Stop Limit | Scotia iTRADE


    How To Set A Stop Limit Order
    To set a Stop Limit order on Scotia OnLine®, begin by selecting your account. Fill in
    the trade ticket with the symbol, market, order type (sell), and quantity.

    Select price type and select ‘Stop Limit’ from the drop-down, and set your stop
    price, as well as your limit price. When you sell, the stop price is always higher
    than the limit price. Select a day sometime in the next 30 days to keep your order
    open for a while.

    Come back on a regular basis to adjust your stop price as the stock price moves up
    or down.

     Select Price Type: Stop Limit

     Set Stop Price

     Set Limit Price

     If stock hits Stop Price > order is activated; turns into a Limit Order

     If trade can be filled above Limit Price, the security will be sold

    4 Stop Limit | Scotia iTRADE


    Mailing address Investor Information Centre
    Scotia iTRADE 48 Yonge Street (Yonge/Wellington)
    PO Box 4002 Station A Toronto, ON, M5E 1G6
    Toronto, ON Tel: 1-888-769-3723
    M5W 0G4 Email: education@scotiaitrade.com

    Scotia iTRADE® (Order-Execution Only Accounts) is a division of Scotia Capital Inc. ("SCI"). SCI is a member of the Investment
    Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Scotia iTRADE does not provide
    investment advice or recommendations and investors are responsible for their own investment decisions. ®Registered trademark of
    The Bank of Nova Scotia. Used under license.

    © Scotia iTRADE 2014. All Rights Reserved.

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