Option trading system – " These specify a price at which the customer wishes to buy or sell and, where necessary, will indicate the period of time for which the order applies.

Looking the market over, you might decide that Goodrich is a good investment, but a little high at its present price of 88. Or you might decide the market is due for a drop of a few points, but that you can't be sure when the break will come. In either case, you can place a limit order with your representative to "buy 100 shares of Goodrich at 85." As usual, the order will be phoned to the floor broker. If the price at the post is 88 or better and shows no signs of weakening, the broker probably will have the order entered in the specialist's book for execution when, as, and if the price turns down. At 85, or lower if subsequent trades should knock the price down without pause at 85, the order will be executed.

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