A Stop Loss order is also known as Sell Stop Market order.

Stop Limit order allows you to set both Stop Price and Limit Price, while Stop Market order only allows the setting up of a Stop Price.

It can be either Buy Stop Market order or Sell Stop Market order. For a Buy Stop Market order, it’s an order to buy a stock once the price reaches at or above a specified price (Stop Price).  It then becomes a Buy Market order and will be matched based on the best available price.

For a Sell Stop Market order, it’s an order to sell a stock once the price of stock reaches at or is below the Stop Price. The Sell Stop Market order then becomes a Sell Market order, and it will be matched based on the best available price.

A Stop Price is the price in a Stop Market order or Stop Limit order that triggers the creation of a Market order or Limit order.

Order Types

Trigger Conditions

Result

Buy Stop Market Order

Stock reaches at or above a specified price (Stop Price) that you’ve set

Market Order

Buy Stop Limit Order

Stock reaches at or above a specified price (Stop Price) that you’ve set

Limit Order

 

Sell Stop Market Order

Once the stock reaches at or below a specified price (Stop Price) that you’ve set

Market Order

Sell Stop Limit Order

Stock reaches at or below a specified price (Stop Price) that you’ve set

Limit Order

With a Buy Stop Market order, you can set a Stop Price above the current last done price of the stock. If the stock rises to your Stop Price or above, your Buy Stop Market order becomes a Buy Market order.

For example, ABC stock is currently trading at RM6.00 per share. You believe RM8 price level is a psychological price level. Once the stock is traded at RM8.00 it could go up much higher. You only want to set the order once this trend is confirmed. Therefore, you set the Stop Price to RM8.

If ABC stock rises to RM8.00 or higher, your Buy Stop Market order becomes a Buy Market Order. ABC stock is then purchased at the best available price but;

If ABC stock stays below RM8.00, your Buy Stop Market order isn’t triggered, and no shares are purchased.

With a Sell Stop Market order, you can set a Stop Price below the current last done price of the stock. If the stock falls to your Stop Price or below, your Sell Stop Market order becomes a Sell Market order.

For example, you purchased CDE stock for RM10 a few months ago. It’s currently trading at RM20 per share (RM10 profit). Your goal is to make at least RM5 per share if the price were to drop. So, you create a Sell Stop order with Stop Price at RM16.50.

If CDE stock falls to RM16.50 or lower, your Sell Stop Market order becomes a Sell Market order and the CDE stock is sold at the best available price

If the CDE stock stays above RM16.50, your Sell Stop Market order isn’t triggered, and you keep your shares.

It can be either Buy Stop Limit order or Sell Stop Limit order. A Stop Limit order consists of Stop Price and a Limit Price. For a Buy Stop Limit order, it’s an order to buy a stock once the price of stock reaches at or is above a specified price (Stop Price). Once the Stop Price (Trigger Price) is reached or is higher than, a Buy Stop Limit order becomes a Buy Limit order and your order matches at your Limit Price or better.

For a Sell Stop Limit order, it’s an order to sell a stock once the price of stock reaches at or below a specified price (Stop Price). Once the Stop Price (Trigger Price) is reached or below, a Sell Stop Limit order becomes a Sell Limit order and your order is matched at your Limit Price or better.

Keep in mind that short-term market fluctuations may prevent your order from being matched or cause the order to trigger at an unfavourable price or not triggered at all. For example, if the market jumps beyond both the Stop Price and the Limit Price, the Stop will be triggered, but the Limit order may not be matched depending on the market.

Also, once your stop order becomes a Limit order, there has to be a buyer and seller on both sides of the trade for the Limit order to match/execute. If there aren’t enough shares in the market at your Limit Price, it may take multiple matches to fill the entire order, or the order may not be filled at all.

With a Buy Stop Limit order, you can set a Stop Price above the current last done price of the stock. If the stock increases to your Stop Price or above, the order becomes a Buy Limit order. Shares will only be purchased at your Limit Price or lower.

For example, EFG stock is currently trading at RM5 per share. You think that if EFG stock reaches RM8 it may go higher. You don’t want to pay more than RM8.05 for EFG stock, so you set a Limit Price at RM8.05.

If EFG stock rises to RM8 or higher, your Buy Stop Limit order becomes a Buy Limit Order and the stock is purchased if shares are available at RM8.05 or lower.

If EFG stock stays below RM8, a Buy Limit order isn’t triggered, and no shares are purchased.

With a Sell Stop limit order, you can set a Stop Price below the current last done price of the stock. If the stock falls to your Stop Price or below, it triggers a Sell Limit order. Shares will only be sold at your limit price or higher.

For example, JKR stock is currently trading at RM10 per share. To protect yourself in case JKR stock begins falling, you set a Stop Price at RM8. You also don’t want to receive less than RM7.95 per share, so you set a Limit Price at RM7.95.

If JKR stock falls to RM8 or below, your Sell Stop Limit order becomes a Sell Limit order and the stock is sold if shares are available at RM7.95 or higher.

If JKR stock stays above RM8, a limit order isn’t triggered, and you keep your shares.

On the buy or sell order pad, select Stop Market at the Order Type and set your desired Stop Price.

Stop Price for Buy Stop Market order must be greater than (>) last done price.

Stop Price for Sell Stop Market order must be less than (<) last done price.

On the buy or sell order pad, select Stop Limit at the Order Type and set your desired Stop Price and Limit Price.

Stop Price for Buy Stop Limit order must be greater than (>) last done price. Limit Price for Buy Stop Limit order must be greater than or equal to (≥) Stop Price.

Stop Price for Sell Stop Limit order must be less than (<) last done price. Limit Price for Sell Stop Limit order must be less than or equal to (≤) Stop Price.

Order Type

Limit Price

Stop Price

Last Done Price

Buy Stop Market

Not applicable

>

LDP

Buy Stop Limit

LDP

Sell Stop Market

Not applicable

LDP

Sell Stop Limit

LDP

Example:

Order Type

Limit Price

Stop Price

Last Done Price

Buy Stop Market

Not applicable

1.81

1.80

Buy Stop Limit

1.81

1.81

1.80

Sell Stop Market

Not applicable

1.79

1.80

Sell Stop Limit

1.79

1.79

1.80

A Stop Price is the price in a Stop Market order that triggers the creation of a Market order. The Market order will match on best available price.

It could have been due to one of the following reasons.

- No ready buyer or seller

- Rejected from the Exchange

- Other reasons but not limited to above

- No ready buyer or seller

- The fluctuating market gaps, where Stop Price is triggered but Limit order is waiting to be matched or not matched

- Order is triggered, but Limit Price is outside the range of Static Price Limit

For example, if the last done price is RM2, you set a Buy Stop Price to RM2.01 and Set Buy Limit Price RM2.30. However, the market gap up to RM2.50 for last done price and traded with RM2.49 for best buyer and RM2.50 for best seller. Your Buy Stop Price is triggered, but your Buy Limit Price is lower, RM2.30 and is currently in the queue.

For example, for a Sell Stop Limit order, if the last done price is RM2, you set a Stop Price to RM1.99, and set Limit Price RM1.60. However, the market gap down to RM1.50 for last done price with RM1.50 for best buyer and RM1.51 for best seller. Your Stop Price, RM1.99 is triggered, but your Limit Price is higher, RM1.60 and is currently in the queue.

Generally, it allows you to manage your investment risks better. It lets you to decide at what price to buy or sell depending on market conditions.

We encourage investor to understand the differences and importance of order types before making the right decision which can help you to achieve your investment goal and to manage your investment risk.

We will adjust your shareholding to a lesser quantity before market trading starts, on the ex-date. We highly recommend checking your order beforehand to prevent overselling.