Series 65: 7.1.5.1.5. Memory Tricks For Orders

Taken from our Series 65 Online Guide

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7.1.5.1.5. Memory Tricks for Orders

Sell limit orders and buy stop orders are typically placed over the market price. This can be remembered through the mnemonic

SLOBS: Sell Limit-Over the market-Buy Stop.

Buy limit and sell stop orders are typically placed under the market price. This can be remembered by the mnemonic

BLUSS: Buy Limit-Under the market-Sell Stop.

SUMMARY TABLE

Types of Orders

Characteristics

Market Orders

• Filled immediately at the best available price

• Always filled

Limit Orders

• Filled at a specific price or better

• Used when not ready to buy or sell at the market price

• Buy limits placed below market price

• Sell limits placed above market price

• Not always filled

Stop Orders (Stop-Loss Orders)

• Turns into a market order when a trigger price is hit

• Buy stops are used to protect short sale gains

• Buy stops placed above market price

• Sell stops are used to protect long sale gains

• Sell stops placed below market price

• Always filled if triggered 

Stop-Limit Orders

• Turns into a limit order when a trigger price is hit

• Two important prices, trigger price and limit price

• Buy stops are used to protect short sale gains

• Buy stops placed above market price

• Sell stops are used to protect long sale gains

• Sell stops placed below market price

• Protects aga

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