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Learn more about Sell on Stop Orders
Sell on Stop Orders are a useful tool to help you minimize your downside
risk if prices take a sudden downturn. Since Sell on Stop Orders are placed
below the current market price, you can use them in two ways: to minimize
your losses if a stock that you purchased isn’t performing as you had
anticipated; or to protect your profits if the price of a stock you purchased
rises, hits a peak and then begins to fall.
Note for Stop Orders with Stop Limit restrictions: Once your order is triggered, there is a
risk that it may not get filled if the price drops quickly below your Stop Limit price. The
order, once triggered is only good till the close of that business day. To ensure continuous
protection in your account, you should periodically review your Stop Orders and for those
stock that you want to continue to protect, re-establish Stop Orders that have been triggered
but not filled.
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