Limit, stop, stop-limit on the TSX with Questrade
April 1, 2009 9:47 AM Subscribe
I am having trouble contacting Questrade to ask them this question, and am hoping someone familiar with TSX trading rules can answer this for me:
posted by omair to work & money (3 answers total)
I bought shares at 45 dollars. If the price of my stock is 60 dollars right now (and going up), and I want to put a stop (or stop-limit) at 57 dollars because I am afraid there is some bad news coming and the stock will plummet suddenly, when the actual price reaches 57, it should trigger my order and sell, right?
However, apparently, on the TSX, stop orders are not allowed, but stop-limits are, but the limit price has to be set equal to the stop price.
1) What is the practical difference, then, between a Stop and a Stop-Limit order if TSX forces the limit price to be set equal to the stop price?
2) If issuing a Stop-Limit on the TSX, will the order be sent to the market when the stock price reaches the value I set for stop/limit, or will it send the order to the market right away because it is not purely a stop order, but actually a stop-limit?
3) What happens if, at the end of the day, the price is still at 60 dollars, but during after hours trading it hits 57, and continues to go down, say to 50 dollars. And then, the next morning, it opens at 50. Does my order get triggered at 50 and that's the price I end up selling at?