What does the statement :“GTC, stop 65 RMB, limit 100 RMB buy” “CFAI book” mean?
is it sell below 65 and buy above 100?
Thnanks
It means that the trade is good until it is canceled. A buy order is activated at 65 RMB but the purchase price will never exceed 100RMB.
Thank for the reply. Follow up question what does Stop signify?
Stop buy would mean that a buy order will be “activated” when it hits or surpasses that level. For example, if a trader puts in a stop order at 60, once the price reaches (or surpasses) 60 it becomes a market order. However, it will not necessarily be executed at 60 depending on the limit order book prices, it may be executed at a higher price.
Stop sell order is the same thing but in reverse. A trader places a stop sell (stop loss) at 40, a sell order is “activated” at 40 but may be executed at a lower price.