Buy Stops Above
As the name implies, a "buy stops above" is a plan to to buy a specific security when its price exceeds a certain “level of resistance” by placing a buy stop order at that price.
The trick is to predict what that level of resistance or price should be, so you know when to place a buy order.
For example, a trader thinks that if the price of Stop At Anything Inc. stock breaks above of $15, it will continue to go higher. She the places a buy stop order at $15.01. This will become a market buy order once it goes above the $15 level, giving the trader the opportunity to get in on the action as the security hopefully continues to go upward. Let the praying begin.
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Finance: What are Limit Order, Sell Limi...4 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
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