Introducing: Advanced Order Types on Voleo
January 28, 2019
At Voleo, we understand that flexibility and control are two extremely important tools needed when managing a good stock portfolio. Especially when collaborating on trade proposals, smarter investing means having the ability to plan ahead and approach each trade with the end goal in mind.
That’s why today we’re introducing the newest feature that will help take your trade proposals to the next level. When proposing a trade, you'll notice a new option for ‘Advanced Order Types’. Now, you have two new types of trades that you can make in order to plan ahead on Voleo. With these new options, you can choose to trade either a Limit Order or a Stop Order, and customize the date range you'd like the orders to apply.
The first new feature is the optional addition of "good until" dates on limit orders. A limit order tells Voleo to execute a trade at a set price or better, and now you have the flexibility of specifying that your limit order can stay open until a specific date. It's also important to note that Voleo defaults its trades as day limit orders, either for the duration of the current trading day or the next if your club passes a proposal after the close.
Buy limit orders will fill at the chosen price, or lower. Buy limit orders are most commonly made by investors who are interested in buying a certain stock but only at a specified price under its current market value.
Sell limit orders will fill at the chosen price, or higher. Sell limit orders are most commonly made by investors who are willing to sell a stock, but only at a specified price above its current market value.
The second type of order is called a stop order. Stop orders are similar to limit orders, but are different in that they tell Voleo to make a trade when a stock price moves beyond a certain price.
Buy stop orders will fill at the set price or higher. Buy stop orders are created by investors who believe a stock has the potential for continued growth and are willing to pay a higher price, if it breaks out above a certain level, for example.
Stop Loss (AKA Sell Stop)
Stop loss orders will fill at the set price or lower. Stop loss orders are created when an investor believes a stock will continue to go down in value, and they want to minimize their losses by selling the stock if it drops below a certain price.
Here’s a summary chart to understand when to use Limits and Stops:
Why use Limits and Stops?
Limit orders are a handy tool for investors who are on the fence about a specific company or want to sell an investment that they’ve had for a while. If you don’t have time to be glued to your investments, Limits and stops can help investment clubs with numerous members be more efficient with their trade proposals, or save individual traders time.
Don’t miss out on your next great trade, try Voleo's new advanced orders today!
If specific securities are mentioned they are for illustrative purposes only and such mention shall not be seen as a recommendation to buy and/or sell. None of the opinions expressed by Voleo or participating guests should be construed as investment advice. Securities offered through Voleo USA, Inc. Member of Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC). Security products are not FDIC insured, not bank guaranteed, and will fluctuate in value. We do not solicit, recommend, or offer investment advice. Voleo USA, Inc. is a wholly owned subsidiary of Voleo, Inc.