Page 49 - Introduction To Investment Management

Note: Use a limit order to guarantee a price. A limit order allows precise order entry.
A limit order is appropriate when getting a specific price is more important than
getting filled.

ii- Market Order – To be executed at any price within the upper and lower limit.
Market orders are orders to buy or sell stocks at the current best price. This

type of order typically always gets filled in active market, but not necessarily
at the exact price that the trader intended. For instance, a trader might place

a market order when the best price is 1.50 but might fill at 1.55 instead.
Market orders are used when you want your order to be processed and

willing to get a slightly different price.

iii- Stop Orders- An order to buy or sell a security when its price exceeds
a particular point, thus ensuring a greater probability of achieving

a predetermined entry or exit price, limiting the investor's loss. The Stop

order also useful to retain or locking investor’s profit.

2.6.3 Bullish or Bearish

Term ‘Bullish’ refers to a financial market of a group of securities in which prices
are rising or are expected to rise in the long run. It reflects by optimism, which means

most investors are confidence the market in favourable condition. While Bearish
refers to a prolonged period in which investment prices fall, accompanied by

widespread pessimism. If the period of falling stock is short and immediately follows
a period of rising stock prices, it is instead called a correction.

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