Posted by rollerblader on 6th of Feb 2018 at 09:05 am
FWIW in regards to placing stops your are Not always limited to
your stock being sold at your set price. For example if your stock
is trading at $15.00 and you set a 'market sell stop' at $11.00 and
the stock gaps down to $9.00 that's what it will get sold at or
lower. If you were to set a 'limit sell stop' on that order at
$11.00 and it gapped down to $9.00 then it wouldn't get sold and
you risk more loss as the price goes down. Either way you are
really only protected if it's more of a trickle down
effect.
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FWIW in regards to placing
Posted by rollerblader on 6th of Feb 2018 at 09:05 am
FWIW in regards to placing stops your are Not always limited to your stock being sold at your set price. For example if your stock is trading at $15.00 and you set a 'market sell stop' at $11.00 and the stock gaps down to $9.00 that's what it will get sold at or lower. If you were to set a 'limit sell stop' on that order at $11.00 and it gapped down to $9.00 then it wouldn't get sold and you risk more loss as the price goes down. Either way you are really only protected if it's more of a trickle down effect.