stop buy sell best bid/ask makers/takers execution, remember, protect, someone, always

kim226

I always get these wrong. Can someone explain what best bid/offer and stop buy/sell makers/takers are?
I just remember Stop buy will protect a short from making losses. Market orders are for immediate execution. Limit buy orders for X are executed when price is less than or equal to X. Limit sell orders for X are executed when price is greater than or equal to X.

brain_wash_your

Best bid: the highest bid from all dealers.
Best ask: the lowest ask from all dealers.
Stop buy/sell:

Market makers: dealers.
Market takers: the rest of us.

OmarAdnan

Hi S200magician,
Would placing a limit order inside the best bid and ask also be referred to as making a new market? Alternatively, would placing a market order be referred to as taking the market? Could you explain why this is? I am a little confused on this topic. Thanks!