Buy functionality for Limit Order / Stop Limit

šŸ¤ Help
1

Hi
Iā€™ve read several forum and help articles on this but still havenā€™t quite got my head around it.

I want to automate a share purchase.

Current share price is 150 and I want to buy 300 shares automatically when the market opens, but only if the price edges in the right direction, If it hits 154 I want to trigger a buy of 300 shares.

If it doesnā€™t hit 154, or if the price goes down, I do nothing.

All the explanations of limit orders / stop limit orders seem to refer to buying at a price thatā€™s lower than the current price. I want to be sure Iā€™m using the correct option (either limit order or stop limit order) and donā€™t accidentally end up triggering a buy or a sell at the wrong price.

This is on the ā€˜investā€™ rather than CFD account.
Thanks!
John

3

Surely the stop limit is what you are after.

The stop triggers a market buy, the stop limit triggers a limit buy. So you use stop limit if you want to guarantee you pay no more than 154

The stop value is just the trigger point.

4

If you place a STOP order @154, it will convert to a market order once it reaches 154, but if the market opens at 160 then you will pay the higher price. So to buy at a specific price you place a STOP LIMIT order, the STOP price is the price at which the order is triggered and the LIMIT is the maximum you are willing to pay.

2 Likes
5

Thatā€™s great, thanks - that clears up my confusion between the two types of order.