![]() 2.3.2 The SS+Auto-Crit+Warg Strike Build.If sellers are abundant, the price at which the order is executed might be much lower than $9. To be clear, this does not guarantee that the order will be executed at exactly $9, but it does guarantee that the stock will be sold. In this case, the investor might place a stop order at $9 so that, when the stock does trade to that level, the order becomes effective as a market order. For example, suppose an investor wants to sell 1,000 shares of XYZ stock if it trades down to $9. ![]() Stop Order – A stop order goes to work when the stock passes a certain level.For example, if a person were to put in an FOK order to sell 2,000 shares at $10, a buyer would take in all 2,000 shares at that price immediately or refuse the order, in which case it would be canceled. Fill or Kill (FOK) – An FOK order must be filled immediately and in its entirety or not at all.If it is not filled that day, the order is canceled. Day Order – A day order is good only for that trading day.The key point an investor using limit orders must keep in mind is that if they are trying to buy, then the asking price, not merely the bid price, must fall to the level of their limit order price, or below, for the order to be filled. If the stock stays below $10 a share, the seller might never be able to unload the stock. ![]() Again, the balance of the stock will not be sold unless the shares trade at $10 or above. Then, they might have to wait until another buyer comes along and bids $10 or better to fill the balance of the order. ![]() Upon placing such an order, the individual would immediately sell 1,000 shares at the existing offer of $10. Using the above spread example, an individual might place a limit order to sell 2,000 shares at $10.
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