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Old 05-30-2009, 12:37 PM   Nav to Top  #1
Billy
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Default Is there any way to use limits and stops in opposite directions?

Suppose a stock is selling at $100.00 and you are awaiting huge news on it (such as the HEB example). Suppose you want to dump it if the news is bad, but sell it at a high price if the news is good. Is there any way to set a selling stop of $70 (for example) and a selling limit of $130?
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Old 05-30-2009, 12:46 PM   Nav to Top  #2
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Originally Posted by Billy View Post
Suppose a stock is selling at $100.00 and you are awaiting huge news on it (such as the HEB example). Suppose you want to dump it if the news is bad, but sell it at a high price if the news is good. Is there any way to set a selling stop of $70 (for example) and a selling limit of $130?
You can put stop limits on your shares, stop limits include a stop price which is a 'trigger' price for when the order activates, and once it activates it follows whatever limit you put in like a regular limit.

So in your example if you put a sell stop limit at: stop = $130 limit = $130
And another sell stop limit at: stop = 80 limit = 79

Nothing would happen if the price fluctuates between 80.01 and 129.99
If the price hits $130 your shares will attempt to sell at some amount equal to or over $130
Likewise if it drops to 80, your shares will attempt to be sold at any amount equal to or higher than $79

http://www.investopedia.com/terms/s/stop-limitorder.asp

Last edited by Kordoyn; 05-30-2009 at 12:50 PM.. Reason: Added linky
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Old 05-30-2009, 12:50 PM   Nav to Top  #3
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I was not aware you could do two for one trade. I use Zecco.com. Do you know if this feature is available on Zecco.com (using two stop limits)? Is it standard practice for all online brokers to let you do two stop limits for one stock?
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Old 05-30-2009, 12:51 PM   Nav to Top  #4
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I am looking at my zecco account now and it still appears you can only do one stop limit per stock.
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Old 05-30-2009, 12:56 PM   Nav to Top  #5
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You should be able to file two separate sell orders. I can do it with Scotiabank. Have not tried it with Questrade.
Some brokers won't let you set stop prices higher than current quote price on sell orders though. Just use a regular limit for the upper sell price.

Edit: Ok Questrade doesn't let me do it, so Zecco might not either. It considers a pending sell order as already sold.

Last edited by Kordoyn; 05-30-2009 at 01:01 PM..
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Old 05-30-2009, 08:03 PM   Nav to Top  #6
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I have etrade and what I use is either One triggers all, or one cancels all. They are found under the conditional tab if you use etrade in the buy/sell section for stocks. So basically if you have the stock already you use a one cancels all option, basically it sets up two contingencies and cancels the other if one is triggered. So you would then put in your limit sell and your stop loss order in the spaces provided. If you wanted to buy a stock and then put a sell order at the same time you would use a one triggers all. So if the stock hits your target buy limit, it then puts in your limit sell at the same time. Thats usually used if you are away and expect it to dip and then go back up but don't have access to a computer. I don't know what option Zecco has, but thats what etrade has. The option your looking for if you already have the stock is one cancels all order, but pleases note they usually don't let you put stop losses on stocks under 1 dollar.
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