Options stock trading terms stop limit system

This type of stop-loss order is also called a sell-stop order. If ABC trades below 48, your stop-loss order is triggered and converts into a market order to sell ABC at the next available price. Note that these orders can also be used to protect unrealized gains, although in this case it would be more accurate to refer to them as stop orders rather than stop-loss orders. If the next price if 47.90, your ABC shares would be sold at 47.90. But what if ABC closes at 48.50 one day, and then reports weak quarterly earnings after market close?

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