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To use a stop-limit order to sell short a stock at a specific price point, you would set a stop price at which the order becomes active and a limit price at which the order will be executed. If the stock price falls to the stop price, the order will be triggered, and it will only be executed at or above the limit price you set. This allows you to sell short the stock at a specific price point.

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4mo ago

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Can you explain how a stop order works in trading?

A stop order is a type of trade order that is set at a specific price point. When the market reaches that price point, the stop order is triggered and the trade is executed. This is used to limit losses or lock in profits for investors.


What is the difference between a stop loss and a stop limit order on Fidelity, and how can they help me manage risk in my investments?

A stop loss order on Fidelity is triggered when a stock reaches a certain price, at which point it is sold at the best available price. A stop limit order, on the other hand, is triggered at a specific price but will only sell at a set limit price or better. Both orders can help manage risk by automatically selling a stock if it drops to a certain level, preventing further losses.


What is the difference between a limit order and a stop order in trading?

A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.


Can you explain how a limit sell order works in trading?

A limit sell order is a type of order in trading where you set a specific price at which you want to sell a stock. Once the stock reaches that price, the order is automatically executed. This allows you to control the price at which you sell your stock, potentially maximizing your profits.


Can you explain how a sell limit order works in the stock market?

A sell limit order is a type of order placed by an investor to sell a stock at a specific price or higher. Once the stock reaches the specified price, the order is executed at that price or better. This allows the investor to control the price at which they are willing to sell their stock, potentially maximizing their profits.

Related Questions

Can you explain how a stop order works in trading?

A stop order is a type of trade order that is set at a specific price point. When the market reaches that price point, the stop order is triggered and the trade is executed. This is used to limit losses or lock in profits for investors.


What does the price point of products mean?

Price point means the price of something.


What is the difference between a stop loss and a stop limit order on Fidelity, and how can they help me manage risk in my investments?

A stop loss order on Fidelity is triggered when a stock reaches a certain price, at which point it is sold at the best available price. A stop limit order, on the other hand, is triggered at a specific price but will only sell at a set limit price or better. Both orders can help manage risk by automatically selling a stock if it drops to a certain level, preventing further losses.


What is the difference between a limit order and a stop order in trading?

A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.


Can you explain how a limit sell order works in trading?

A limit sell order is a type of order in trading where you set a specific price at which you want to sell a stock. Once the stock reaches that price, the order is automatically executed. This allows you to control the price at which you sell your stock, potentially maximizing your profits.


Can you explain how a sell limit order works in the stock market?

A sell limit order is a type of order placed by an investor to sell a stock at a specific price or higher. Once the stock reaches the specified price, the order is executed at that price or better. This allows the investor to control the price at which they are willing to sell their stock, potentially maximizing their profits.


What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.


Can you explain how a buy limit order works in the stock market?

A buy limit order is an instruction to purchase a stock at a specific price or lower. This order will only be executed if the stock's price reaches the specified limit price or lower. It allows investors to control the price at which they are willing to buy a stock, helping them to potentially get a better deal.


What is a buy limit order above market price and how does it work in trading?

A buy limit order above market price is an instruction to purchase a stock at a specific price that is higher than the current market price. This order will only be executed if the stock's price reaches the specified limit price or lower. It allows traders to set a maximum price they are willing to pay for a stock, helping them control their purchase price and potentially secure a better deal.


Can you explain how a limit order works in trading?

A limit order is a type of order placed by an investor to buy or sell a stock at a specific price or better. It allows the investor to set a price at which they are willing to buy or sell a stock, and the order will only be executed if the stock reaches that price. This helps investors control the price at which they enter or exit a trade, providing more control over their investments.


What does limit mean when buying stock?

It's actually "limit order." It is a direction to a stockbroker to buy or sell at a specific price, or better. If it is a buy limit order, the broker will buy for you if the stock is at the limit order price or lower, and if it is a sell limit order, the broker will sell for you if the stock is at the limit order price or higher. A buy limit order is similar to a long call, and a sell limit order is similar to a long put.


What is the difference between a price and a price point?

There is no difference. For any use of "price point", one can substitute the word "price" as a synonym. The widespread use of the term price point reflects the insidious encroachment of corp-speak and jargon into everyday parlance.