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Can someone please explain the usage of TTO orders (eg Market+TTO, Stop+TTO, and Limit+TTO)?
The way I understand it, it is a "combination" order, in that when the initial part of the order is filled (eg Market order, Limit order etc), a second order is generated to "bracket" the stock price, and when it hits one of the prices I've specified (stop loss below the purchase price, and profit target above the purchase price), then it sells as a market order (irrespective of whether it's a gain or loss, so long as it hits one of the prices I've defined). Does that sound right?
What I am wanting is to set up a trade (a buy AND a sell) BOTH with limits .... not having the TTO part of the order as a market order, but a limit order. Sometimes the spreads are pretty wide, and I want to minimize slippage due to the market order.
Any comments / suggestions / thoughts on this? If it is possible, what would the broker call this type of order?
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