question regarding stop loss

Discussion in 'Order Execution' started by serendipity1276, Feb 23, 2008.

  1. I have ETrade. How do I do this on ETrade?

    Let's say I short stock XYZ at $100. I want to put a limit stop loss at $101 ($1 higher). If the stock doesn't hit $101 first, then, when this stock dips downward $5 from the price I shorted it at ($100), then, I want to cover at a limit price at $95.

    Plus, for every dollar that this stock dips, I'd like the stop loss limit value to move downward $1 also. For example, when the stock moves down to $99, I'd like the new stop loss limit value to be at $100. When the stock moves down to $98, I'd like the new stop loss limit value to be at $99. When the stock moves down to $97.50, I'd like the new stop loss limit value to be at $98.50.

    So when this stock hit $95, my position will be covered. Then, the stop loss will be canceled automatically.



    In addition, I have some more questions regarding this:

    1) When the stock hit $95, this be a limit cover order. What happens if my order is not all filled, and the stock bounces to $95.25, and never hit $95 again? Will the shares that didn't get executed automatically become a market order?

    On the other hand:

    2) Remember, I have a limit stop loss order at $101. If this stock hit $101, and my stop loss limit executes, but my order is only partially filled? Then, the stock rises higher to $101.25 and then keeps on going up higher? Will the shares that didn't get executed to cover at $101 automatically become a market order?