Taking Your Trade To The Limit
So you're ready to trade some XYZ stock. How are you going to place the order? You have two basic choices: a market order or a limit order. Buy or sell "at the market" and you'll get the price that's available when your order hits the bourse. But with volatile stocks in thin markets--such as many of today's tech issues--that can be a risky proposition. A limit order limits your risk by letting you name your own price for a stock. No less an authority than Securities & Exchange Commission Chairman Arthur Levitt thinks limit orders, which now make up two-thirds of orders on the New York Stock Exchange, are the small investor's best friend.
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