Buy and Sell functionality of Limit, Stop & Stop Limit explained

[Paul252526]

Hi, I’m learning day by day and recently used the ‘Buy / Limit’ feature for the first time - woppie!

Can some explain or point me to a video on the explanation of the following -
BUY - what is ‘Stop’ and ‘Stop Limit’
SELL - what is the functionality of ‘Limit’, ‘Stop’ and ‘Stop Limit’.

The key thing I want to set up is a sell safety ie stop loss amount.

Cheers
Paul

[Dao]

have you checked out the help centre already?

https://helpcentre.trading212.com/hc/en-us/categories/360001248038-Investing

[Paul252526]

Super, thanks Dao, appreciate this.

[phildawson]

Understanding STOP, LIMIT and STOP LIMIT

The app and desktop have descriptions when you click into the sections. Basically a Market and Stop which will just try and get the best price. A limit or a Stop limit allows you to specify the max or min price per share you are willing to do the deal at depending on buy/sell. The limit can save in situations where the price say might blip temporarily above the trigger point, if you have it at give me the best price it might be higher/lower than what you wanted to either buy/sell at when the …

[Paul252526]

Many thanks Phil, your explanation should be on their website! Very well explained. Good luck in today’s trades. Cheers Paul

[StockRed]

While reading it I think there is a typo, they are not explaining the concept correctly.

Limit ‘Sell’ Orders

Here’s how to set one:

1. Select your preferred instrument.

2. Tap on ‘Sell’ followed by the ‘Limit’ window.

3. Select the number of shares you wish to sell.

4. Set a Minimum Price you wish to Buy (should be sell !!! so confusing ) the shares for.

5. Review and Send Order.

How it is different to Limit ‘Buy’ Orders?

[phildawson]

@David @George can the Limit Orders help article be updated

There is a mistake in the word minimum on the buy too.

Limit ‘Buy’ Orders

Here’s how to set one:

1. Select your preferred instrument.
2. Tap on ‘Buy’ followed by the ‘Limit’ window.
3. Select the number of shares.
4. Set a Minimum Maximum Price you wish to Buy the shares for.
5. Review and Send Order.

@StockRed

How it is different to Limit ‘Buy’ Orders?

A limit buy you are setting the maximum per share to buy at. Unlike a market order where it’ll just give you best price at the time. It’s used say if the price was 10 and about to rocket up, you put a limit at 12. If the ask instantly shot up to 20 it wouldn’t thankfully execute.

A limit sell you are setting the minimum per share to sell at. So if the price was 10 and limit at 8 then you should get a either a minimum of 8 or it wouldn’t execute say if it jumped 10 to 7 and carried on down (Whilst a market sell might have got you ~7)