Understanding STOP, LIMIT and STOP LIMIT

The interface of Trading212 seems different to all the training videos on youtube and even the layout and button seem to be different. I cant find any videos in the current format to explain the use of Stop, Limit and Stop limit functions.

Can some one please provide assistance in explaining how to use these functions when buying stock in Invest platform of Trading 212

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@awaisjd Have you read these pages? They may help.

Thanks Richard. I do understand the concept of these functions i just was wondering how about to do it in the trading platform. It seems a bit confusing to me, so was hoping for a video instruction of sort.

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You can support a new video on this idea and maybe it can get done.

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 deal is done.

Buy

Market

Buy now at the best price you can get

Limit

Buy now only if the deal is at or below the price you specify

Stop

When the price reaches this amount, then buy at the best price you can get

Stop Limit

When the price reaches this amount, then buy only if the deal is at or below the price you specify

Sell

Market

Sell now at the best price you can get

Limit

Sell now only if the deal is at or above the price you specify

Stop

When the price reaches this amount, then sell at the best price you can get

Stop Limit

When the price reaches this amount, then sell only if the deal is at or above the price you specify

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Hey Phil,

Can you explain to me what I have done wrong with the above screenshot? as you can see my stop limit is set to 1.89 and 2.00, but the price has dropped to 1.86. Have I got them the wrong way round or something?

You are saying you don’t want to sell for less than 2.00. You should have put the limit at less than 1.89. If you put stop at 1.89 and limit at 1.85, you would create a sell when the price drops to 1.89, but be protected against selling at a very low price, were it to jump down to below 1.85.

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Hey Richard, thanks for the reply. Just to confirm I have understood you correctly:
If I had put the limit at 1.89, it would have sold, however, if the price had dropped too much, i.e. to 1.85, it would not have sold and I would have kept my shares?

And: if this is correct, what is the function to use if I have a stock valued at 2 and I want to say I want to sell when it hits 3, but if it hits 1 sell?

Thanks again,

You can create both limit sell at 3 and stop sell at 1.

Okay, so when I do that, the second I try to set up shows this:
I set up the high sell first using the limit tab.

Sorry about that. It seems you cannot have both orders pending at the same time. I tried it in my account and saw the same. Perhaps just set some alerts and be ready to do manual trades. I wonder if anyone has a better idea.

Thanks for checking it out for me, and explaining the stop limit function. Will have to use that to avoid big losses and then pay attention to manually cash out for profits then! Cheers

It think it would be possible, at some cost of losses on buy/sell spread to set up trades in the CFD account that do what you want, and then once one CFD sell trade has activated you could, at your leisure, reverse it by a CFD buy trade, simultaneously selling the Invest account position. The costs due to spread in the CFD trades might be too high for this to be worthwhile.

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Maybe in a few years when I get to grip with the basics! haha Thanks for all your learning points though, I really do appreciate it.

Just out of curiosity I looked further at how this CFD strategy could be done. The CFD side has something called a OCO order, “one cancels the other”, which could be used to sell either at 3 or 1. That would lock in your sale price, and leave your Invest long and CFD short in balance, able to be closed simultaneously later. I’ve never done this myself. But I think I’ll try it in practice account just to learn.

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Hey Richard, that sounds genius. Thanks for sharing. I’ll also give it a go in practice. Could unlock what I’ve been trying to set up