A: To maximize profitability on a position, Ernie may recommend “entering a lowball order” or “entering a limit order” at a price that is lower than the current price. This means that the recommendation is to place an order with your broker to buy at the moment the security or option drops to the desired price. So if XYZ stock is trading at $12.00 and the recommendation is to “enter a lowball order of $10.00 GTC,” you will place an order to buy under $10.00 good ’til canceled (GTC) – meaning the order stays open until it’s triggered or you cancel it. As soon as XYZ dips below $10.00, your order will be filled at the number of shares specified.
Category: Biotech Insider Alert