Post date: Apr 26, 2012 1:28:5 PM
An order to buy or sell a stock immediately at the best available current price.
Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making.
It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.
Read more: http://www.investopedia.com/terms/s/stop-lossorder.asp#ixzz1t4StijuI .
What Does Limit Order Mean? Video , Vid 2
An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.
Depending on the direction of the position, limit orders are sometimes referred to more specifically as a buylimit order, or a sell limit order.
Limit orders typically cost more than market orders. Despite this, limit orders are beneficial because when the trade goes through, investors get the specified purchase or sell price. Limit orders are especially useful on a low-volume or highly volatile stock.
Read more: http://www.investopedia.com/terms/l/limitorder.asp#ixzz1t9WzPkv0
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