Why does it say this when I try and put limits on already owned stock?
This is a common issue when you have already added a limit sell.
Have a look down and check one isn’t already on place.
I have a stop (sell if it drops at a point) but I also want to add a limit (sell if it hits my target). Can you not do this?
You can’t have both, you can offer your stock for sale with one price only.
Why not? Makes no sense.
If you have physical shares and you go to the market to sell them, can you offer them for 2 different prices?
I can do what I want. If I want to sell at two different prices I can. If it’s busy I’ll raise my price of it’s quiet I’ll drop it. But I think I get your reasoning. So does my sell order, although not processed, influence the market (averaging sell price among all others)?
Yes, you can choose a price and then change it up or down, but you can’t have 2 different prices at the same time.
Ok thanks, but does a prospective sell influence the market in anyway? If not I don’t get why you can’t have two. It’s just an instruction isn’t it?using your analogy the price imadvertising influences the market, as it’s a live price and public.
Not at our level, but offers from institutional traders affect the market. When you place a limit or a stop order you actually offer your stocks to the market at a specific price (not just an IF instruction), any one with access to level 2 data can see your offer. If a trader offers a few million shares that can have an effect the market direction.
The same in reverse if you place a limit BUY order, you are offering to buy the shares at a specific price. If you place an order of a few million shares above the market price, the price will go up.
Why would any institution set a limit below the current price then, wouldn’t that be just shooting yourself in the foot especially if you own a large % of the float. Surely all institutions could set limits above their price and drive it up.
Why would you set a limit above current pruice? Why wouldn’t you buy at the lower price. Surely if your confident the price will rise you don’t wait for it to confirm your expectations and lose out on gains you buy it there and then…
Sometimes you want to make sure the price is moving in the right direction (up) before you buy, or the wrong way (down) before you decide to sell.
Also if you are trading a large number of shares, you need to be sure your order can be fulfilled in full, so you might offer a price higher or lower than the market.
Hey, was a bother for me too, I split my shares for half limit sell and half stop loss
It’s nice because you get alerted and on selling stock (say at upper resistance) can go higher so you sell on that… Or it drops a little more (if falls back to support can reload up)
For stop losses, then at least you sell half, and there may or may not be a bounce, and you can sell the remainder
It’s not ideal but this way has some benefits to minimise risk and automate the sells
Ok I think I get where your coming from. Thanks for answering. It’s hard to get your head around sometimes.
And for offering to buy at a highr price, it is common to place an order above a certain resistance level, as the stock will probably continue to rise if it crosses a certain level.
That makes sense. Ok
we can just hope that this comes soon(™). it has been bothering me too as you can have take profit+stop loss+trailing stop active on the CFD platform which offers way better control.