Other Stop Order Considerations

by David Jenyns on December 21, 2005

Other Stop Order Considerations
An example that would involve a stop order: a trader bought a stock for $50 to see what would happen. If the stock is falling slowly, the market order may execute at $48.40, slightly lower, or even slightly higher, in theory although this doesn’t happen too often. If it’s falling quickly, it could execute a little below $48.40. If the stock is falling extremely fast, it could execute well below $48.40.

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