Stock purchase automation and using stop-limit? How to do this? (Investing)

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Hi guys, I’ve read a similar question here but the answers are not 100% clear.

Let’s just say there’s a stock that’s currently at $100.

I would like to buy it if it reaches $90, but let’s say I’m going to a jungle for 2 days with no internet and I want to set up the purchase before I go.

So I would like to:

  • Purchase the stock if it reaches $90

  • However, if the stock instantly plummets when I purchase it, I would like to sell at $80.

  • Otherwise keep the stock

How can this be automated?

I’m looking at the Stop Limit interface (screenshot below)

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Where do I put my $90 price?

And where do I put my $80 stop loss?

The first section is asking for a price above (why above?) the current price of $100. This will convert the order to a limit order. What exactly is this?

The second part asks about how much I would like to pay per share. I’m guessing this is where my $90 goes?

Where do I put the stop loss of $80?

And what is the point of setting a price above the current price like it’s asking me to?

I hope I’ve explained my problem clearly enough. I’d just like to automate everything in my bullet points.

I’ve also had a look at the stop section (screenshot again below) to try and understand it a bit more: “Set the price above the current price that converts your order to a market order” So the share is $100, I can only use this feature if I want to automatically purchase the share above $100? I don’t even know why somebody would use this feature! But I’m new to this, maybe some people like to buy high sell low, who knows :slight_smile:

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Thanks in advance :slight_smile:

1 Like
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@pipo There’s currently no way to place such order as you’ve described. What the stop limit does is you set a level that when it’s reached, it triggers a limit order to buy a security for a certain price or better.

We’ll be adding additional order types in the future so we’ll probably have more complex ones that’ll do the job.

4 Likes
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Ok.

Could you explain this section if you don’t mind for the stop order (my second screenshot):

“Set the price above the current price that converts your order to a market order”

Why would somebody wait for a share to increase in value before buying? Is this function for those who catch an upwards trend?

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[…] The buy stop order can serve a variety of purposes with the underlying assumption that a share price that climbs to a certain height will continue to rise. […]