Such “unlimited” orders are also called market orders and, depending on the market situation, they are executed immediately – buy orders at the cheapest and sell orders at the best conditions.
“Limited” orders have a price limit (limit amount): Buy orders may be executed at most for the limit amount and sell orders must be executed at least for the limit amount. The actual execution price depends on the market situation and it can differ from the limit amount!
For this reason and thus, to protect the investor, e.g. buy orders for penny stocks with prices below 1.00 are accepted only with limits.
Buy orders with the limit suffix “stop buy require entering a stop limit on which your order is to be activated. The stop limit must be above the current stock price of the security at the time when you enter your order.
If the stock price of the underlying security reaches the stop limit or exceeds it, the buy order is activated. The order becomes an unlimited buy order (cf. “without limit”).
Stop buy orders for penny stocks with prices below 1.00 are not accepted in the interest of the investor’s security.
Sell orders with the limit suffix “stop loss” require entering a stop limit on which your order is to be activated. The stop limit must be below the current stock price of the security at the time when you enter your order.
If the stock price of the underlying security reaches the stop limit or falls below it, the buy order is activated. The order becomes an unlimited sell order (cf. “without limit”).
Orders with the limit suffix “stop limit” require that a stop limit is entered and an additional limit amount. This limit type is only possible in OTC limit trading and in trading via most stock exchanges..
In principle, stop-limit orders work like stop buy/stop loss orders. The buy or sell orders are activated when the stop limit is reached or exceeded and respectively fallen below. The sole difference: The orders do not become market orders but limited buy or sell orders (cf. “Limit”).
This is an additional order type offered at the Xetra exchange.
Through this functionality of Deutsche Börse, all Xetra participants can enter orders in a closed order book and be certain of complete anonymity. The execution price is always exactly the average value of the best buying rate and best selling rate in the open order book at the Xetra.
As a result, the minimum order volumes amount to €25,000 for DAX orders and €10.000 for all other orders. Smaller orders can be rejected by the stock exchange. This entails that also partly executed orders can no longer be executed or changed when the open volume is too small. In these cases, the relevant orders can only be cancelled.
Orders in Xetra MidPoint can be provided with or without limit. Order suffixes to control execution are possible, for example, “Fill or Kill” and “Immediate or Cancel”. Orders are exclusively executed together with other Xetra MidPoint orders.