Stop Loss Orders
February 5th, 2010 by admin
Stop Loss Orders: What happens if the market goes to just one direction indicating a huge loss? If you do not take any action, your account may wiped out.
To escape any such situation we generally use a Stop Loss order. Stop Loss orders minimize the losses in case of unprofitable move in the price of security has started.
In SL orders we set out a price below the current market price and the order is to sell. Whenever the price of the security reaches this level, the position will be closed automatically.
For meeting of SL order provisions, the trading terminal checks short positions with ASK price, and long positions with BID price.
Tags: Bid Price, checks., current market, Loss Orders, losses, Provisions, Stop Loss OrderPosted in
