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What Happens When a Limit Sell Instructs the Broker to Act if the Stock Price Rises Above a Specified Limit? In the dynamic world of stock trading, traders and investors use various tools and strategies to maximize their returns on investment and manage risks. One such tool is the limit sell order, a crucial instrument in the arsenal of investors. This article will dissect what happens when a limit sell instructs the broker to act if the stock price rises above a specified limit, offering an in-depth exploration suitable for both novice and seasoned traders. Understanding Limit Sell Orders A limit sell order is an order to sell a security at a specified price or better. This type of order ensures that the seller gets at least the price they have set, or a higher one, if the market accommodates. A limit sell order contrasts with a market sell order,...
On Ex-Dividend Date, Which Orders Are Reduced for Cash Dividends? When the ex-dividend date approaches, investors often find themselves questioning how their existing orders will be affected. Understanding the implications of an ex-dividend date is crucial for making informed investment decisions. Let's delve into the concept and how it influences different types of orders in the market. What is an Ex-Dividend Date? The ex-dividend date is a critical date set by the company declaring the dividend. It determines who is entitled to receive the upcoming dividend payment. Investors who own the stock on or before the ex-dividend date are eligible to receive the dividend, whereas those who purchase the stock after this date are not. Types of Orders Affected by Cash Dividends A variety of order types are influenced by the ex-dividend date, particularly when a company announces a cash...
What Is the Definition of the Quote Currency in the Forex Market? The quote currency in the forex market is the second currency quoted in a currency pair. It is also known as the counter currency or secondary currency. In a typical foreign exchange transaction, one party purchases a quantity of one currency by paying a quantity of another. The first and most common currency quoted in a pair is called the base or primary currency, while the second and less common one is called the quote or secondary currency. For example, if you were to purchase EUR/USD at 1.2550, then you would be buying Euros (the base) and selling US Dollars (the quote). This means that for every Euro you buy, you must sell 1.2550 US Dollars. The value of any given pair will always be expressed as how much of...