How do I buy or sell shares in the stock market?
Mar 06, 2019 · When you buy a stock, the goal is to have it go up in value and produce a profit for your brokerage account. However, it can be a prudent strategy to set a price to sell below the purchase price ...
Is there a way to sell at a certain price?
Answer: You place a limit order at the price you want to sell, above the current price. The order goes into effect when the price is hit, assuming the stock goes up. you can also place a stop order below the current price which will be executed when the price falls to that point, if you want to ...
How do I put a stop sale on a stock?
In this example, assume you select a stop-limit order with a $17 stop price and a $16.50 limit price. When the stock falls to or below $17, your shares automatically sell for at least $16.50. If you instead choose a stop order with a $17 stop price, your stock sells for the best available price when the stock declines to $17.
How do I set a minimum price to sell my stock?
What happens if you buy a stock?
When you buy a stock, the goal is to have it go up in value and produce a profit for your brokerage account. However, it can be a prudent strategy to set a price to sell below the purchase price, so if the stock goes down instead of up, your losses are limited.
How does stop loss work?
A stop-loss order converts to a market order when the market price touches your selected stop price. The actual price at which you sell the shares may be different from your stop price. If the stock is falling quickly, your stop may be completed at a much lower price than you planned.
Who is Tim Plaehn?
Tim Plaehn has been writing financial, investment and trading articles and blogs since 2007. His work has appeared online at Seeking Alpha, Marketwatch.com and various other websites. Plaehn has a bachelor's degree in mathematics from the U.S. Air Force Academy.
What does stop order mean?
Your brokerage account may use the term stop order, meaning the same as stop-loss. The order screen will require your stop price, which must be lower than the current share price. You also must select a time frame for the order from the options of day-only or good-till-canceled – GTC.
What is stop limit order?
A stop-loss order is assured to be filled, but at an unknown price. A stop-limit order will be completed at the price you choose, but may not work if the share price falls too fast.
What happens when a stock goes up in value?
When the stock you buy goes up in value as expected, you can adjust the price of your stop-loss order. After the stock makes a nice move up, your stop-loss order with a higher stop price becomes a take-profits order – although it will still be called a stop-loss.
What happens when you stop a stock?
When you place a stop order and the stock hits your stop price, your shares sell for the best available market price. When you place a stop-limit order and the market declines to your stop price, your stock sells for at least a minimum price that you designate.
What happens if you use a stop limit order?
If you use a stop order and the market falls past your stop price, your shares might sell for much less than your stop price. If you place a stop-limit order and the market dips below your limit price, your shares might not sell.
How to buy stock with capital letters?
Step 1. Log in to your brokerage account and click the “Buy/Sell” command. Type the ticker symbol of capital letters of your desired stock and click “Buy.” (This is the choice most brokerage sites offer; some differ in exact wording.)
How long does a good till cancelled order last?
A day order lasts until the end of the trading day. A good-til-cancelled order remains open until it fills.
