One of our member asked the folllowing question:
When you say for example:
sell at 12.48 and stop at 12.72
What do you exactly mean?
The meaning of sell at 12.48 and stop at 12.72
is to short sell the stock at 12.48 and place the stop order at 12.72 to protect your position, if the stock goes up instead of going down.
Kindly refer the following link for details about what a stop order is.
http://www.dreamtai.com/mainpages/questions.htm
What is stoploss order and how do I place it ?
A stop loss order is an order you place with your broker to close your positions automatically if you lose more than a specified amount of money in that trade.
In this way, if you place a trade you can be confident that your trade will be closed if you lose more than a specified amount.
For example, if you buy IBM at $110.00 and then place a Stop Loss order at $107.00, if the stock price goes below $107.00 your shares will be sold.
So, the maximum loss you will face is = $ 3.00 ( $110.00 -$107.00).
Contact your broker for details on how to place stop loss orders.
It is always safe to place the stop order IMMEDIATELY as soon as your order is filled to protect your position if the prices go against you.
DreamTai calculates the stop loss based on the stock volatility. The more volatile a stock, the furthur away is the stop price to give the stock some room to move.
