What is the purchase of a minus order?

Purchase order minus includes an order to purchase a specific number of shares or securities, while the provision that the order for the purchase of shares is not carried out unless certain market conditions are formed, especially the price of the shares. When purchasing a minus order, the market price is equal or lower than the price of the last trade for the same event or security. The price of the previous trade must be minus. To be minus, the price for the last trade must also be smaller and the minimum change in the price of the shares was either an increase or a tick with a zero plus. Many investors decide to buy shares under the market price, in view of the minus purchase strategy specifically.

In order to place a minus order, the investor must first look at the current market price. This will provide the starting point for the assessment of safety power and find out if there is sufficient interest from the investor so that it caneven. In addition, we will also look at the previous commercial price, because it will be used by looking at the safety history. The investor is looking for a trend in which there is a reasonable chance that certainty will eventually trade at a price under the current market price. After achieving this lower price, the shares are expected to increase the value at the rate that is acceptable to the investor.

In general, the purchase order is often a good risk if the previous trading price is relatively close to the current market price. For example, if shares are currently trading for $ 30.00 USD (USD) per share, but traded for $ 27.00 per share a short time, the performance can be ideal for making a minus order. This is particularly true if there is a reason to believe that the act of purchasing under the market price will be a result of shares that will increase to a point that creates revenue for the investor before re -aligning. Order of a minus purchase is often considered a good wayQuickly realize profit, especially if safety is sold in front of the peak and begins again.