00:01
So investors can use different types of orders to make security transactions.
00:09
What is an order to buy or sell a stock at the best price available when the order is placed? so let's see what types of orders we have here.
00:20
So part a is a stop loss order.
00:22
On a stop loss order, you would place an order, say i had 100 shares of disney.
00:30
And right now disney's trading for about $93.
00:35
Well, i would say i want to put in a stop loss order of $85.
00:41
And what that means is that my order won't go through until disney goes down to $85.
00:50
If it hits $85, then i want to just cut my losses and sell.
00:55
And that's what a stop loss order does.
00:57
So we're going to sell at $85.
00:59
It won't sell unless it hits that number.
01:02
A short sale order, well, let's say that i think disney's going to go down.
01:07
So right now disney is at $93.
01:10
I think it's going to go down.
01:12
So i want to put in a short sale order for disney, meaning i want to borrow this stock from somebody and sell it for $93.
01:23
And then whenever i think it goes down, i'm going to sell it back to the market for a lower cost and i'll make money.
01:31
So a short sale is when you're wanting to go short on a stock, which is not what this is.
01:38
Neither of these is asking for the best price...
