You can set the Buy Limit Price (i.e., the maximum price you are willing to pay for the stock) and the Sell Limit Price (i.e., the lower price you are willing to accept for the stock) above or below the Trigger Price.
See below suggested placements of the Buy Limit Price relative to the Trigger Price depending on your trading objective:
|
Type of Buyer |
Placement of Limit Price |
Rationale |
|
Aggressive |
Limit Price > Trigger Price |
Increase the chance of an execution when triggered |
|
Cost-conscious |
Limit Price < Trigger Price |
In the hope of a pullback in the share price |
For Sell Conditional Orders, suggested placements of Limit Price relative to the Trigger Price are as follows:
|
Type of Seller |
Placement of Limit Price |
Rationale |
|
Aggressive |
Limit Price < Trigger Price |
Increase chance of execution when triggered |
|
Optimistic |
Limit Price > Trigger Price |
In the hope of a bounce in the share price |
Just be careful not to set the Limit Price too high (for a sell order) or too low (for a buy order), or else the market will not sell to/buy from you.