A stop-buy order would most likely be used by:
A.both bearish and bullish investors.
B.bearish investors but not by bullish investors.
C.bullish investors but not by bearish investors.
Please help…
Are you talking about Buy-Stop Order instead? Buy Stop order is placed if investors thinks that certain stock is going to go up very high. Investor can place this order at price that is above market price (to confirm the research). Once stock reaches that level, BUY order will be executed and investor can be benefited from further increase in the price. So this is a bullish strategy
Not sure but I will choose A. It’s used by bearish investors as a stop-loss order, however, it also can be used as a signal for the bullish investor to make sure that it follows the upward trend. Really appreciate if someone helps with this question.