1. Stop-loss order: This is an instruction for automatic clearance when the buyer's bid or the seller's asking price reaches the predetermined price.
Example: Mr. Zhang bought 65,438,000 shares of the company when its share price was $25. He is worried that once the stock price falls, it will bring him great losses. So he decided that when the stock price fell to $20, he would "stop the consignment order" and sell the original 65,438+000 CPQ shares.
2. Limit order: This consignment order combines two forms: buy limit order and sell limit order. When the stock reaches a certain price, use a stop-loss order.
For example, suppose Aunt Li placed an order for 65,438+000 shares of General Motors (GM) today when the stock price was $50. As long as the company's stock reaches 50 dollars or more, this order will be executed.
3. Limit order: an order to buy or sell foreign exchange contracts at the price decided by the customer or at the price of the performance time. It is the second most frequently used instruction in foreign exchange transactions, which specifies the highest price that the buyer is willing to buy or the lowest price that the seller is willing to sell.
Example: When YHOO's share price was 100 USD, Uncle Ma shorted 1000 shares. Then I paid a stop loss of 1 14 dollars. If the stock reaches $ 1 14 yuan or above, the order will take effect and be converted into a price limit of $ 1 14 yuan.
Extended data:
In addition, there are limit orders and stop orders in the pending orders.
The differences between them are as follows:
1, transaction type
Sellllimit is a sell limit order.
A sell stop loss is a sell stop loss order.
2, the price is different
The current market price of the selling order is higher than the price set by the pending order.
The current market price level of the sell order limit must be lower than the price set by the pending order transaction.
3. Uncompensated short-selling difference in securities or foreign exchange transactions
Stop-loss selling is shorting below price floor.
Sellllimit is below the limit.
4. Application
Sellllimit is usually used to sell orders near the upper support level.
A sell stop loss is usually used to sell an order near the next support level.