Just a bit confused. Need a little help

[cchilds1976]

I have a stock that I am holding. However, I am interested in selling the stock if the price reaches $20.95 (for profit) or if the drops to $16.24 (to reduce loss). I understand a limit order would facilitate this process. I am a little confused on the which limit order would be needed in this case, and on how I would enter the order to cover both scenarios. Would it be Limit, Stop Loss, or Stop Limit? The platform I am dealing with is Robinhood.

 

[Panic!]

Normally this would be called a bracket order, but I don't know anything about the RobinHood platform. Can't you just give their customer service a call?

 

[Dowser]

If I remember correctly, A stop limit order will guarantee the price but not the execution and a stop order will guarantee execution but not the price, you'd have to decide which is most important.

 

[cchilds1976]

I did send Robinhood an email so hopefully they'll respond.

 

[tomorton]

I sometimes see this question but am confused as I don't receive the choice.

So, for example, if price is 1.3188, I can either set a buy stop order above 1.3188 or a buy limit order below. Likewise, I can either set a sell limit order above or a sell stop order below. No choice of order type is involved, only the choice of whether to buy or sell and whether to do so above the current price or below. These choices are of course driven by the strategy, and there is no choice of order type. The decision to buy or to sell and the price to do it at is not driven by the order type.

I hope I'm not the one who's confused but it seems like a non-question to me.

 

[barjon]

Limit orders allow you to buy or sell a stock at a better price, therefore. a sell limit order is above the current market price and a sell stop order is below it. A buy limit order is below the current price and a buy stop order above it.

So, in relation to the op’s question a sell limit order @ $20.95 and a sell stop order @ $16.24 fills the bill.

 

[Panic!]

So, in relation to the op’s question a sell limit order @ $20.95 and a sell stop order @ $16.24 fills the bill.

No. This means that if one of these orders is executed, the other one is still active. You need to make sure you enter both orders in a way where one cancels the other as soon as one is executed. This is typically called a bracket order, or you can group them in an OCA (one cancels all) group. All decent brokers offer this functionality.

 

[barjon]

No. This means that if one of these orders is executed, the other one is still active. You need to make sure you enter both orders in a way where one cancels the other as soon as one is executed. This is typically called a bracket order, or you can group them in an OCA (one cancels all) group. All decent brokers offer this functionality.

Yes, forgot the one cancels other bit. Thx.

 

[Kevin Link]

I have a stock that I am holding. However, I am interested in selling the stock if the price reaches $20.95 (for profit) or if the drops to $16.24 (to reduce loss). I understand a limit order would facilitate this process. I am a little confused on the which limit order would be needed in this case, and on how I would enter the order to cover both scenarios. Would it be Limit, Stop Loss, or Stop Limit? The platform I am dealing with is Robinhood.

Given that you want to place an order to sell your stock when the prices hit $20.95, you'll have to place a sell limit order so that the stock will be sold once it has hit the price you've specified. To cover yourself against further loses whenever the market has gone against you, you will use a stop loss. These terms cut across all markets, so I don't think it will be any different in Robinhood.