Stop order: Gaps down can result in an unexpected lower price.
Limit orders and price gaps
In a similar way that a "gap down" can work against you with a stop order to sell, a "gap up" can work in your favor in the case of a limit order to sell. In the next example, a limit order to sell is placed at a limit price of $105. The stock's prior closing price was $104. If the stock opened at $110 due to positive news released after the prior market's close, the trade would be executed at the market's open at that priceâhigher than anticipated and better for the seller.
Limit order: Gap up can result in an unexpected higher price.
Bottom line
Many factors can affect trade executions. In addition to using different order types, traders can specify other conditions that affect an order's time in effect, volume, or price constraints. Before placing your trade, become familiar with the various ways you can control your order. That way, you'll be much more likely to receive the outcome you're seeking.
What are price gaps?
A price gap occurs when a stock's price makes a sharp move up or down with no trading occurring in between. It can happen because of factors like earnings announcements, a change in an analyst's outlook, or a news release. Gaps frequently occur when exchanges open or when news or events outside of trading hours have created an imbalance in supply and demand.
Stop orders and price gaps
Remember that the key difference between a limit order and a stop order is that the limit order will only be filled at the specified limit price or better; whereas, once a stop order triggers at the specified price, it will be filled at the prevailing price in the marketâwhich means it could be executed at a price significantly different than the stop price.
What is a stop limit order?
Another order type combines a stop order and a limit order. The stop limit order specifies the price that the order should be triggered and the price that the trader wants to execute the trade. It gives the trader a traditional stop order, but once triggered, a limit order at their specified price instead of a market order. While the trader might prefer to sell at their limit price, execution isn't guaranteed, and the trader has risk of the stock moving lower after triggering.
The chart below shows a stock that "gapped down" from more than $34 to around $32 between a previous closing price and the next opening price. A stop order to sell at a stop price of $34âwhich would trigger at the market's open because the stock's price fell below the stop price and, as a market order, executes at $32âcould be significantly lower than intended, and worse for the seller. In the case of a stop limit order with the stop set at $34 and the limit at $33, for example, the trader could be watching the stock trade lower and "hoping" or "waiting" for the stock to return to $33 before being executed.
Stop order: Gaps down can result in an unexpected lower price.
What is a stop order, and how is it used?
A stop order is an order to buy or sell a stock at the market price once the stock has traded at or through a specified price (the "stop price"). If the stock reaches the stop price, the order becomes a live market order and is typically filled at the next available market price. If the stock fails to reach the stop price the order isn't executed
A stop order may be appropriate in various scenarios
âą When a stock you already own has risen and you want to attempt to protect part of your unrealized gain should it begin to fall
âą When you recently bought a stock and want to set a floor around the level of loss you'd be willing to tolerate on the position
âą When you want to buy a stock should it break above a certain level because you think that could signal the start of a continued rise
A sell stop order is sometimes referred to as a "stop-loss" order because it can be used to help protect an unrealized gain or seek to minimize a loss. A sell stop order is entered at a stop price below the current market price. If the stock drops to the stop price (or trades below it), the stop order to sell is triggered and becomes a market order to be executed at the market's current price. A sell stop order is not guaranteed to execute near your stop price. A stop order may also be used to buy. A buy stop order is entered at a stop price above the current market price (in essence, "stopping" the stock from getting away from you as it rises)
Let's revisit our previous example but look at the potential impacts of using a stop order to buy and a stop order to sell with the stop prices the same as the limit prices previously used
While the two graphs may look similar, note that the position of the red and green lines is reversed: The stop order to sell would trigger when the stock price hit $144 (or less) and would be executed as a market order at the current price. So, if the stock were to fall further after hitting the stop price, it's possible that the order could be executed at a price that's lower than the stop price
Solana meme coin Over 20% Popcat rises after Binance futures
Binance implemented perpetual contracts for Solana-based meme currency POPCAT.
KuCoin also featured POPCAT/USDT on its spot market.
POPCAT rose over 20% after both exchange listings.
With technical indications showing the meme coin is overbought, it may correct.
On Thursday, Binance offered perpetual contracts for Solana meme currency POPCAT with up to 75x leverage. The listing allows Binance's large user base to leverage POPCAT's price. Such ads sometimes boost bitcoin prices.
KuCoin exchange added a POPCAT/USDT trading pair following Binance's announcement, enabling users to deposit and trade tokens on its spot market.
Lookonchain data shows a whale withdrew $5.73 million of SOL from Binance to buy POPCAT after these developments.
POPCAT rallies but may correct.
Positive developments boosted POPCAT's price by over 22% in 24 hours. The action suggests exchange-wide POPCAT buying pressure.
Meme coin social volume rose from 7% to 53% on Thursday. Despite increasing prices, social volume shows strong investor mood, yet overconfidence might cause a reversal.
POPCAT may encounter resistance at $0.7132 on the 4-hour chart. The 100-day SMA may stop meme coin price growth.
RSI just entered overbought at 69.7. Price correction is likely after such a move. The %K and %D lines of the Stochastic Oscillator (Stoch) are also over 80 in the overbought range.
A price correction might drop POPCAT by over 30% to find support.
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A few words about timing
At Schwab, you have several choices for how long your limit order stays active.Â
⹠Day only. Order is active for one regular trading session only (or the remainder of the trading session if the order is entered while the market is already open).
⹠Good till canceled (GTC). Order is active between the hours of 9:30 a.m. and 4 p.m. ET and active for up to 180 calendar days (unless filled or canceled). Orders placed after 4 p.m. ET during the weekend or on holidays will be active the next trading day.
⹠Day + extended hours. Order is active during all equity trading sessions from 7 a.m. to 8 p.m. ET for one day only. Orders placed after 8 p.m. ET during the weekend or on holidays will be active the next trading day.
⹠GTC + extended hours. Order is active for all equity trading sessions from 7 a.m. to 8 p.m. ET and is active for up to 180 calendar days (unless filled or canceled). Orders placed after 8 p.m. ET during the weekend or on holidays will be active the next trading day.
⹠Extended-hours a.m. (Ext. AM). Order can be placed between 8:05 p.m. ET (previous trading day) and 9:25 a.m. ET. The trade, however, is active only during the Ext. AM session for that day. The Ext. AM session runs daily from 7 a.m. to 9:25 a.m. ET, Monday through Friday, excluding market holidays.
Extended-hours p.m. (Ext. PM). Order can be placed Monday through Friday between 4:05 p.m. and 8 p.m. ET. The trade, however, is active only during the Ext. PM session for that day. The Ext. PM session runs daily from 4:05 p.m. to 8 p.m. ET, Monday through Friday, excluding market holidays.
While placing orders in extended hours is sometimes viable, traders will want to consider some of the downsides as well. First, only limit orders are accepted in extended orders; market and stop orders are not. Second, trading activity often falls sharply at the end of normal trading hours and the lack of liquidity in extended hours can pose additional risks, especially during the GTC+ extended-hours time frame. For example, an earnings report or other news.
$AUCTION
The current market price of AUCTION is between $17.59 and $24.62, with a 24-hour trading volume of around $176.18 million Âč. The market capitalization of AUCTION is around $116 million, ranking it 358th among all cryptocurrencies Âč. The price of AUCTION has been fluctuating, with a recent drop of -18.43% Âč. However, the long-term prospects of AUCTION depend on various factors, including market trends, adoption, and competition ÂČ.
What is a market order and how do I use it?
A market order is an order to buy or sell a stock at the market's best available price. It typically ensures an execution but doesn't guarantee a specific price. When the primary goal is to execute the trade immediately, a market order is optimal. It's generally appropriate when you think a stock is priced right, when you're sure you want a fill on your order, or when you want an immediate execution.
A few caveats: A stock's quote typically includes the highest bid potential buyers are willing to pay to acquire the stock, the lowest offer potential sellers are willing to accept to sell the stock, and the last price at which the stock traded. However, the last trade price may not necessarily be current, particularly in the case of less-liquid stocks, whose last trade may have occurred minutes or hours ago. This might also be the case in fast-moving markets when stock prices can change significantly in a short period of time. Therefore, when placing a market order, the current bid and offer prices are generally of greater importance than the last trade price.
Market orders are usually placed when the market is already open. A market order placed when markets are closed would be executed at the next market open, which could be significantly higher or lower from its prior close. Between market sessions, numerous factors can impact a stock's price, such as the release of earnings, company news or economic data, or unexpected events that affect an entire industry, sector, or the market as a whole.
What is a limit order and how does it work?
A limit order is an order to buy or sell a stock with a restriction on the maximum price to be paid (with a buy limit) or the minimum price to be received (with a sell limit). If the order is filled, it will only be at the specified limit price or better. However, there is no assurance of execution. A limit order may be appropriate when you think you can buy at a price lower thanâor sell at a price higher thanâthe current quote.
YOU CAN GAIN 98.89% ACCURACY ONCE YOU IDENTIFY THESE COMMON FACTORS ON ANY TOKEN!
If you're looking for ways on how to have better reading of the market situation, you're in the right place.
YOU CAN GAIN 98.89% ACCURACY ONCE YOU IDENTIFY THESE COMMON FACTORS ON ANY TOKEN!
If you're looking for ways on how to have better reading of the market situation, you're in the right place.
Here's why.
{future}(ARKMUSDT)
{future}(RUNEUSDT)
{future}(SUNUSDT)
There are common misconceptions as to how traders react in the market. Most would think that all traders react the same way. When in fact, only traders who don't want to become profitable think the same way. Those who are thinking many steps ahead are the real profitable ones.
The best way to identify the next price action isn't based on the direction that the market is currently facing. Instead, the areas that were left by the market. That's the main point of this strategy is to identify the imbalances in the market. May it be the previous impulsive wave's imbalance or just some tiny bits of imbalances in the ranging market. As you can see in our example with ARKM, you can visualize the possible upcoming fulfillment of imbalances, the fulfilled imbalances and as well as the unfulfilled imbalances. Once you identify tokens with the similar market situation, you can have more chances of possibly entering that token with better position in the market.
Stay wise, trade cautiously.
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đš WHY BINANCE PREFER NOT TO LISTED ON STOCKMARKET UNLIKE COINBASE đš
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The Untold Story of Binance's Decision to Forego an IPO
Binance, the world's largest cryptocurrency exchange, has no plans to go public anytime soon. In a recent interview, CEO Richard Teng revealed that the company is focused on achieving long-term stability and endurance, rather than seeking short-term gains through an initial public offering (IPO).
This marks a significant shift in strategy for Binance, which was previously led by founder Changpeng "CZ" Zhao. CZ's departure was part of a multi-billion-dollar settlement with the US government, which forced him to step down from the company he built.
Under Richard's leadership, Binance is transforming from a founder-led operation to one governed by a board of directors. The company is prioritizing compliance, increasing its spending in this area by 36% last year compared to 2022.
Despite speculation that Binance might join the IPO wave, Richard quickly shut down those rumors. "We're in a very strong financial position, so there's no need for us to consider fundraising or an IPO at this time," he stated.
Binance has been profitable since its early days, according to Richard. The company has managed its finances prudently and is focused on securing licenses and making settlements in key markets around the world.
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Introducing Binance's New Web3 Wallet: Your Key to Enhanced Privacy and Security đ
Binance has launched the Web3 Wallet, a cutting-edge non-custodial wallet designed to put you in full control of your digital assets. With this wallet, you manage your own keys, ensuring maximum privacy and security. But remember, with great power comes great responsibilityâonce your keys are lost, they're gone for good.
What makes the Web3 Wallet a game-changer? It seamlessly integrates with Binance's platform, offering secure storage and compatibility with a vast array of decentralized applications (dApps). Tailored for the Web3 ecosystem, it opens doors to new applications and services beyond the traditional internet.
The Web3 Wallet uses innovative multi-party computation technology, splitting your key into multiple components stored across the cloud, your device, and Binanceâs servers. This approach significantly boosts security, allowing access to your wallet without the need for a seed phrase.
In a time where crypto security is more crucial than ever, Binanceâs Web3 Wallet is set to reduce the risks of hacking and identity theft. Plus, it facilitates cross-chain token trading within the wallet, making transactions faster and more secure. As the crypto world evolves, this advanced wallet could set a new standard for security.
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