Trading In Your Account

Order Types

  • MARKET ORDER - An order to buy or sell a stock at the current market price. The advantage of a market order is that you are almost guaranteed your order will be executed provided there are willing buyers and sellers.  The disadvantage is that the execution price of your order may not always be the price you obtained from a real-time quote service or your brokers.  This may be especially true in a volatile market.  When you place a market order, particularly for a large number of shares, there is a greater chance you will receive different prices for parts of the order.
  • LIMIT ORDER - An order to buy or sell a stock at the a specific price.  A buy limit order order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.
  • STOP ORDER - An order to buy or sell a stock once the price of the stock reaches a specific price, known as the stop price.  When the specified price is reached, your order becomes a market order.  

  • BUY STOP ORDER - Investors typically use a stop order when buying stock to limit a loss or protect a profit on short sales. The order is entered at a stop price that is always above the current market price. 

  • SELL STOP ORDER - A sell stop order helps investors to avoid further losses or to protect a profit that exists if a stock price continues to drop. A stop order to sell is always placed below the current market price.

The advantage of a stop order is you don't have to monitor how a stock is performing on a daily basis. The disadvantage is that the stop price could be activated by a short-term fluctuation in a stock's price. Also, once your stop price is reached, your stop order becomes a market order and the price you receive may be much different from the stop price, especially in a fast-moving market where stock prices can change rapidly. An investor can avoid the risk of a stop order not guaranteeing a specific price by placing a stop-limit order.

The use of stop orders is much more frequent for stocks that trade on an exchange than in the over-counter (OTC) market. Key West Investments LLC does not accept stop orders for Over-the-Counter (OTC) Securities. Before you enter into these types of orders, you should speak to your broker about how these orders work. 

  • STOP LIMIT ORDER - A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy or to sell at a specified price.

The benefit of a stop limit order is that the investor can control the price at which the trade will get executed. But, as with all limit orders, a stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast-moving markets where prices fluctuate wildly.

The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-counter (OTC) market. Key West Investments LLC does not accept stop orders for Over-the-Counter (OTC) Securities. Before you enter into this type of order, you should speak to your broker about how the order works.

  • DAY ORDERS - Unless you give your broker specific instructions to the contrary, orders to buy or sell a stock are "day orders," meaning they are good only during that trading day. Orders that have been placed but not executed during regular trading hours will not automatically carry over into after-hours trading or the next regular trading day. Similarly, day orders placed during after-hours trading can only be executed during that after-hours session. If your order is not executed during a trading session, you will have to place a new order in the next trading session.
  • GOOD-TIL-CANCELLED ORDER - A Good-Til-Cancelled (GTC) order is an order to buy or sell a security at a specific or limit price that lasts until the order is completed or cancelled. A GTC order will not be executed until the limit price has been reached, regardless of how many days or weeks it might take. Investors often use GTC orders to set a limit price that is far away from the current market price. Key West Investments will hold GTC orders for one (1) year, at which time the order will cancelled and you will be required to place a new order.



Penny Stocks Agreement

It is important that retail customers investing in penny stocks meet suitability requirements and attest to their understanding of the inherent risks.  Therefore, customers purchasing penny stocks for the first time with Key West Investments LLC must be approved for this new business prior to the first transaction. In addition, the Company requires that customers newly investing in penny stocks, whether or not the trade was recommended, sign a “Penny Stock Purchase Agreement.”  This form must be completed and received prior to each of the first three (3) penny stock purchase transactions.



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(626) 377-9988
or email to: support@keywestinvestments