When would I specify a Stop Limit (“dont sell for less than”) on my order?
When you place a Sell on Stop Order and your stock reaches its Stop Price in the marketplace, your order becomes a Market Order and your stock will be sold for the best available price. In volatile markets or with volatile stocks the price you receive may be considerably lower than you are prepared to accept. To reduce your downside risk, you have the option of selecting a Stop Limit in those markets which permit it. The Stop Limit is a restriction on your order which says that you will not accept a price less than the Stop Limit for your stock. Markets which permit Stop Limits include: the Toronto Stock Exchange, the New York Stock Exchange and the TSX Venture Exchange. This feature is not available for Nasdaq listed stocks.
