For sellers, a price change is when a person buys or sells a lot for a price that is not within the normal range of trading in their market. This means that if you see a price change on the web, it may represent a price swing.
Example of a price swing
The following image shows our price chart. We were last at US$6.00 and at 8.25 on the day we purchased a lot at US$5.00, the price swing would have occurred and we would have moved the lot up to US$4.50 or lost value.
How to avoid a price swing?
Keep a close eye on the price of the lot. You will have to go through the entire lot in a single trip to see if you are getting a good price. For example, if you get a good price for a lot in the US$5 range and the price swings up, it means the lot is worth more than US$5 and therefore selling is the best option. If something happens to the lot, it may be a good idea to wait a few days to see if things return to the normal level before selling again.
The same goes for buying a lot at a lower price. The more you buy, the more likely you are to get a good price.
What happens if you don’t sell the same day?
If you only buy a set amount of lots in a day, this doesn’t mean you have to sell the whole lot on the same day. Instead, you can put all your money into a single lot before the price moves up and you can hold it without selling.
Here is a similar scenario. In the example, a lot at US$5 is at US$5.00 on the day we bought it. We decide to sell it at US$5.00. Now let’s say we have more than US$50 in our money and we’re looking to sell it at a discount. In order to stop the downward move, we need to keep buying lots with good prices. If the price drops below our pre-determined price, we must not sell at that time.
As you can see, the sale is a loss, but we didn’t have to purchase anything or sell anything to reach our minimums. The process of reducing our minimums can be found in section 5.
You should always have a minimum order on your account, otherwise your limit orders will not be
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