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Forex Trading What is a stop order function?
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Question by: dothecray - 02 Sep 2014, 10:32:36
What is a stop order function?
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Answers (5)
avatar user 2981
Answer by: Orion - 03 Sep 2014, 09:19:31

It may be used to minimize losses. For a long position, a stop order is placed below the current price. If a trader holds a short position, then a stop order will be placed above the current price.

avatar user 4437
Answer by: Samanthar - 30 Jan 2015, 04:29:21

An order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in his or her profit. Once the price surpasses the predefined entry/exit point, the stop order becomes a market order.

avatar user 4523
Answer by: Jeremy - 09 Feb 2015, 03:40:29

Stops are not a 100% guarantee of getting the desired entry/exit points. For instance, if a stock gaps down, the trader's stop order will be triggered (or filled) at a price significantly lower than expected.

avatar user 4898
Answer by: Henry - 04 Mar 2015, 03:26:11

Investors commonly use a stop order before leaving for holidays or entering a situation where they are unable to monitor their portfolio for an extended period.

avatar user 5471
Answer by: Joseph - 23 Apr 2015, 03:04:35

Traders who use technical analysis will place stop orders below major moving averages, trendlines, swing highs, swing lows or other key support or resistance levels.

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