NYSE stop orders eliminated

[riverbabe]

NYSE to eliminate "stop orders" from February 26th! Did everybody know this? Not me.

http://www.reuters.com/article/nyse-stoporders-idUSL3N13C5NW20151117#1ckyjJgZ4SuiVOo7.97

[Louetta]

Might not be as serious as it looks. All orders on the NYSE book will go away but I understand brokers may still implement these features so ordinary customers will not see a difference. Methinks that's why it has not received more publicity.

What I never understood is why good til cancelled orders are affected. The sudden unexpected drop in the market reasoning makes sense for stops but not, at least to me, for GTCs.

[billyjoe]

...and remember to hit the "all or none" condition on thinly traded issues. I learned this when I paid a 9.95 commission on 1 share of a $5 stock.

-----------------billy

[mimo_100]

Stop orders come in two flavors - stop limit and stop market - the difference meteaches from meexperiences as a broker is this: a stop market becomes a market order to sell when the stop price is hit. A stop limit becomes essentially a GTC sell order when the price is hit.

These orders were good years ago when it was more difficult to enter orders when a person was in a far away land on vacation and they wanted some "protection" from the market falling.

GTC orders get you out of a position when the market is rising. In my opinion, you do what The Huge One does and set a sell price and hope it hits it. 15-16% on a regular basis is not shabby - the risk is owning an issue that drops and never hits the sell price or worse yet heads south and never comes back, or an issue that continues higher, maybe much higher than the 15-16%.

I advised selling a stock with a market order if the customer was indecisive about selling. Of course, there are exceptions and you must always be aware of thinly traded issues (maybe floats of less than 50 million shares) when entering market orders. AON will delay the execution of market orders on thinly traded stocks, thus it becomes a virtual hybrid market/limit order methinks.

[IIC]

NYSE to eliminate "stop orders" from February 26th! Did everybody know this? Not me.

http://www.reuters.com/article/nyse-...JgZ4SuiVOo7.97

Yeah...read about it about 3 weeks ago.