Limit + Stop Market Order

A limit + stop market order combines a limit order with a stop order. Limits for both the limit order and the stop order are defined when the limit + stop market order is placed. If and when the limit order is fulfilled, the stop market order is set in motion.

Example: An investor buys shares in a stock with a going market rate of 161.29 Swiss francs using a limit + stop market order. They select a price of 160 francs as the threshold for the limit order and a threshold of 163 francs for the stop market order. If the stock’s rate slides to 160 francs, the broker will buy the shares as long as they are able to purchase them at the limit threshold of 160 francs or less. Once the limit order has been filled, the stop market order takes effect. If the stock’s rate climbs to 163 francs, a market order is triggered and the broker sells the shares at the best available bid.

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