DERAYAH GLOBAL
Market Order (MKT):
A market order is an order to buy or sell a specified number of securities at
prevailing market prices.
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100
2
at a price of
$100
5
Upon placing a
Market Order
1,000
of a certain
company
1
to Sell 1,000 shares
100
Sell Order
5,000 shares
Sell
Order
6
The order will be executed
at a price of $ 100
per share
If there is a bid for
5,000 shares
100
5,000 shares
1
Sell
Order
If there is an offer of
5,000 shares
The order will be executed
at a price of $100
per share
Buy Order
1,000
2
of a certain
company
to buy 1,000
shares
100
at a price of
$100
3
Upon placing
a Market Order
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Limit Order (LMT):
A Limit Order is an order to buy or sell a specified number of securities at a
price determined by the trader.
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100
2
is $100 at
a quantity
of 5,000 shares
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Upon placing
a Limit Order
1,000
on the shares of
a company
To sell 1,000 shares at
a price of $100
Sell Order
1
6
The order will be executed
as there is another bid which
matches the sell order’s
price and quantity
If the best bid price
1
If the best
offer price
The order will be executed
as there is another offer
which matches the buy
order’s price and
quantity
Buy Order
1,000
2
on the shares
of a company
To buy 1,000 shares
at a price of
$100
100
is $100 at a quantity
of 5,000 shares
3
Upon placing
a Limit Order
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Stop Loss/Profit Order (STP):
A Stop Order is an order to buy or sell a specified number of securities if the
price of the security reaches a trigger price determined by the trader; if the
trigger price is reached, the Stop Order becomes a Market Order.
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98
2
Upon placing a Stop
Loss order with a
stop price of $98
5
the order will not be
executed until the
price of the share
falls to $98
98
If the price of the
share reaches $98
on the shares of
a company
Sell Order
1
6
the order will become
a market order
If the best bid price
is $100
1
If the best offer price
is $100
the order will become
a market order
Buy Order
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102
2
on the shares of
a company
If the price of the share
reaches $102
102
Upon placing a Stop
Profit order with a stop
price of $102
3
the order will not be
executed until the price of
the share rises to $102
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1- Sell Stop Order: The stop price must be less than the market price of the security, or the order will be executed immediately.
2- Buy Stop Order: The stop price must be higher than the market price of the security, or the order will be executed immediately.
Limit Stop Loss/Profit Order (STP LMT):
A Limit Stop Order is an order to buy or sell a specified number of securities if
the price of the security reaches a trigger price determined by the trader at a
limit price determined by the trader; if the trigger price is reached, the Stop
Limit order becomes a Limit Order at the price determined by the trader.
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4
97
2
Upon placing a Stop
Limit order with
a stop price of $98
5
and a limit price
of $97
98
the order will not be
executed until the price of
the share falls to $98
on the shares of
a company
Sell Order
1
6
at which point the order
becomes a Limit Order at
a price of $97
If the best bid price
is $100
1
If the best offer
price is $100
at which point the order
becomes a Limit Order
at a price of $103
Buy Order
6
102
2
on the shares of
a company
the order will not be
executed until the price
of the share
rises to $102
103
Upon placing a Stop
Limit order with a stop
price of $102
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5
and a limit price
of $103
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1- Sell Limit Stop Order: The stop price must be less than the market price of the security, and the limit price must be less than or equal to the defined
stop price, or the order will be executed immediately.
2- Buy Limit Stop Order: The stop price must be higher than the market price of the security, and the limit price must be higher than or equal to the
defined stop price, or the order will be executed immediately.
Market on Close Order (MOC):
A Market on Close order is an order to buy or sell a specified number of
securities which is executed at prevailing market prices at the close of the
market. The order must be submitted at least 15 minutes before market
close.
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100
2
at $100 on market
close
5
when an MOC
order is placed
1,000
of a company
1
for 1,000 shares
Sell Order
5,000
shares
100
Sell
Order
6
the order will be
executed at $100
If there is a bid to buy
5,000 shares
100
5,000shares
1
Sell
Order
If there is an offer to
sell 5,000 shares
the order will be
executed at $100
Buy Order
1,000
of a company
for 1,000 shares
100
2
at $100 on market close
3
when an MOC
order is placed
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Limit on Close Order (LOC):
The Limit on Close Order is an order to buy or sell a specified number of
securities which is submitted at a limit price defined by the trader and
executed at the close of the market. The order must be submitted at least 15
minutes before market close.
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100
2
at $100 on market
close
5
when an LOC
order is placed
1,000
of a company
1
At $100 for
1,000 shares
Sell Order
5,000shares
6
the order will be executed at
100 as the quantity is available
at the price determined by the
trader at market close
If there is a bid to buy
5,000 shares
5,000shares
1
If there is an offer to
sell 5,000 shares
the order will be executed at
100 as the quantity is available
at the price determined by the
trader at market close
Buy Order
1,000
of a company
At $100 for
1,000 shares
100
2
at $100 on market close
3
when an LOC order
is placed
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Trail Order:
A sell trailing stop order sets the stop price at a fixed amount below the market
price with an attached "trailing" amount. As the market price rises, the stop price
rises by the trail amount, but if the stock price falls, the stop loss price doesn't
change, and a market order is submitted when the stop price is hit. This
technique is designed to allow an investor to specify a limit on the maximum
possible loss, without setting a limit on the maximum possible gain. "Buy"
trailing stop orders are the mirror image of sell trailing stop orders, and are most
appropriate for use in falling markets.
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1,000
If the market price is $100.
for a company.
Inputting a sell Trail Order
of 1,000 shares with a trail
of 2 means that the
current stop price is $98
When the share price
rises to $102, the stop
price will rise to $100, and
the order will not be
executed.
When the share price falls
to $101, the stop price will
remain at $100, and the
order will not be
executed.
When the share price
rises to $105, the stop
price will rise to $103, and
the order will not be
executed.
When the share price falls
to $103, the order will
become a sell market
order.
When the share price
rises to $99, the stop price
will remain at $100, and
the order will not be
executed.
When the share price
falls to $95, the stop price
will fall to $97, and the
order will not be
executed.
When the share price
rises to $97, the order will
become a buy market
order.
Sell Order
Buy Order
1,000
If the market price is $100.
for a company.
1
2
Inputting a buy Trail Order
of 1,000 shares with a trail
of 2 means that the
current stop price is $102.
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When the share price falls
to $98, the stop price will
fall to $100, and the order
will not be executed.
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Trailing Stop Limit Order:
A Trailing Stop Limit Order is designed to allow an investor to specify a limit on
the maximum possible loss, without setting a limit on the maximum possible
gain. A sell trailing stop limit moves with the market price, and continually recalculates the stop trigger price at a fixed amount below the market price, based on
the user-defined "trailing" amount. The limit order price is also continually recalculated based on the limit offset. As the market price rises, both the stop price and
the limit price rise by the trail amount and limit offset respectively, but if the stock
price falls, the stop price remains unchanged, and when the stop price is hit a
limit order is submitted at the last calculated limit price. A "Buy" trailing stop limit
order is the mirror image of a sell trailing stop limit, and is generally used in
falling markets.
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2
100
If the market price of the
shares of a company is
$100.
Inputting a Trailing Limit
Stop sell order at $100 with
a trail of 2 means that the
current stop price is $98.
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97
Inputting a limit offset of 1
means that the current
limit price is $97.
When the share price
rises to $102, the stop
price will rise to $100, and
the limit price will rise to
$99, and the order will
not be executed.
When the share price falls
to $101, the stop price will
remain at $100, and the
limit price will remain at
$99, and the order will
not be executed.
When the share price
rises to $105, the stop
price will rise to $103, and
the limit price will rise to
$102, and the order will
not be executed.
When the share price falls
to $103, the order will
become a limit order with
a limit price of $102.
When the share price
rises to $99, the stop price
will remain at $100, and
the limit price will remain
at $101, and the order will
not be executed.
When the share price
falls to $95, the stop price
will fall to $97, and the
limit price will fall to $98,
and the order will not be
executed.
When the share price
rises to $97, the order will
become a limit order with
a limit price of $98.
Sell Order
Buy Order
100
If the market price of the
shares of a company is
$100.
1
Inputting a Trailing Limit
Stop buy order at 100 with
a trail of 2 means that the
current stop price is $102.
2
103
Inputting a limit offset of 1
means that the current
limit price is $103.
3
When the share price falls
to $98, the stop price will
fall to $100, and the limit
price will fall to $101, and
the order will not be
executed.
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