GREY:NATUF - Post by User
Post by
ttibsenon Jul 10, 2011 10:38am
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Post# 18815258
Bracketing Orders
Bracketing Orders
Sorry - I know that strictly speaking, this is not the place to post such a query but I assume that you are all grizzled trading veterans who might know the answers that I am looking for.
I have 2 questions.
I am frequently in the position that I can’t follow my stocks closely and what I have always wanted to do is the following. Assume that I hold 10,0000 shares of Eastern Platinum (ELR - Toronto) that I bought at 1.00
Could I do the following - place 2 orders simultaneously
Sell 10,000 ELR @ 1.30
Stop Sell 10,000 ELR @ .80
on an OCO (one cancels the other) basis? In effect, I am bracketing my position such that if the price goes up, I get out with my profit and if the price goes down, I exit the trade with my predetermined loss. All without having to actively watch the markets. Can I bracket my orders this way with any of the online brokers out there?
The second question that I am a bit unclear on is the use of a Stop order to limit my losses. In the above example with ELR, let’s assume that the market does go against me and trading in ELR reaches 80¢. Does the Stop Sell order above become a market order to sell my 10,000 shares (which I hope is the case) or does it become a Stop Limit order (which I would hope is NOT the case). If it is the latter, how can one be sure that they can get out of their positions when the market goes against them?
Thanks
John