The SLoBS over BLiSS acronym can be found in many places teaching the SIE Exam and the Series 7 Exam. If you want to find an easy way to remember the different stop orders and limit orders, then this is the acronym for you!
SLoBS over BLiSS: Where to Start
First, start with the basics. What exactly does this acronym stand for? The most important way to remember SLoBS, is that it’s SLoBS over BLiSS. The “over” part of the trick is important because it helps identify which acronym is on top. When we say “on top” we mean that any sell limit orders or buy stop orders must be placed above the market price. So, SLoBS over BLiSS is specifically in that order.
SLoBS = Sell Limit or Buy Stop
The other significance for slobs being on top is that it indicates the direction in which the market price should be heading in order to trigger, or execute they sell limit order or buy stop order. SLoBS is on top because the price should be going up to trigger or execute one of the orders.
BLiSS Means What Then?
BLiSS = Buy Limit Sell Stop
BLiSS orders are meant to be placed below the market price. This is why the BLiSS acronym is underneath SLoBS.
In other words, buy limit orders, or sell stop orders must be placed below the current market price. Similar to SLoBS, the placement also indicates what direction the market price of the stock should be going. For BLiSS, it should be going down in order to trigger or execute a buy limit, or sell stop order.
So What is a Stop-Limit Order Then?
The Series 7 difficulty level is such that this simple acronym won’t often be enough. Stop-Limit orders are occasionally tested, and add an extra wrinkle to the problem. Here you combine the rules of both SLoBS and BLiSS.
For instance, a sell stop-limit order, combines a sell stop (from BLiSS) and sell limit (from SLoBS). In these more complicated orders, you deal with one at a time (in order) to work your way through the problem. They are a little more tricky, and are best explained with a visual. For more help we fully explain them on our YouTube channel and our Series 7 video course.
If this quick rundown wasn’t enough, please feel free to reach out. There are plenty more tips and tricks where these come from! Good luck!