HOLLYWOOD STOCK EXCHANGE
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Another example
Stock X is trading at $10. You think that's a fair price, but you'd totally short it if it went to $15. You set a limit order to buy 100,000 of X at $15, stock goes up to $16 and at $15, your limit order steps in and shorts 100,000 shares.
OR
Stock Y is trading at $10. You think there wouldn't be much profit if buying at that price but if the stock was only $5 you'd totally buy it. You set a limit order to buy 100,000 at $5 and of course as soon as the stock goes down past that price your limit order buys you the stocks.
But be careful! Stock Y may have gone down to $5 because it's star died and the writer tore up the script. You might have been living your life while this news happened, but when you returned to your computer you owned 100,000 shares in Y bought at $5 each, when it's now trading at .02 cents. The limit order timeframes (ie keep this order open for a day, week or month) are very useful for this ...
Can someone explain how a "limit order" works and how to correctly post a limit order. Apr 01, 09:08
Limit orders only work if you are making a profit.. NOT to prevent losses... Apr 01, 10:01
I tried this too and found out the hard way. lol {nm} Apr 01, 10:10
Additionally...here's how you would set a limit order.... Apr 01, 10:10
Great explaination... Apr 01, 10:34
You're welcome. {nm} Apr 02, 08:23
Another example Apr 01, 16:41
Im confused about your first example jane_citizen Apr 02, 10:04
It wouldn't short it, you would have to later manually sell and then short the stock. Apr 02, 11:31
sorry! I meant you would set a limit order to short at $15, not to buy Apr 02, 18:03
If this works, I will have learned something. Keep posting, we'll query you if we're confused. Thx {nm} Apr 02, 18:31
yeah, probably test any of my limit order theories with single shares Apr 03, 14:54
Good suggestion. I'll do that. {nm} Apr 03, 22:34
