Blue Chip you are talking about a sell stop correct?
let me say that buying at 44.1 and having a sell stop at 43.5 is not a good idea..you are going to get stopped out.
The way a SELL STOP works is its a "net" order that if a stock drops a certain point then you trigger a sell and based on the second leg of the order then you sell..
So here is an example.
I buy FSLR at 115 today (I didnt)
I dont want it to drop below 105 and still be long the stock, so I put in a SELL STOP order as follows-
SELL 100 shares of FSLR at 105 STOP and the trigger limit order is 105 (or say 104.75 etc).
You can also have a SELL STOP as the sell portion of the order is a MARKET order..so if the STOP is triggered than the order turns into a market order.
SELL STOPS are semi complicated and you should know what it is, how it works and what happens when it is triggered-
This seemed to be good at explaining the order
Blue Chip you are talking about a sell stop correct?
let me say that buying at 44.1 and having a sell stop at 43.5 is not a good idea..you are going to get stopped out.
The way a SELL STOP works is its a "net" order that if a stock drops a certain point then you trigger a sell and based on the second leg of the order then you sell..
So here is an example.
I buy FSLR at 115 today (I didnt)
I dont want it to drop below 105 and still be long the stock, so I put in a SELL STOP order as follows-
SELL 100 shares of FSLR at 105 STOP and the trigger limit order is 105 (or say 104.75 etc).
You can also have a SELL STOP as the sell portion of the order is a MARKET order..so if the STOP is triggered than the order turns into a market order.
SELL STOPS are semi complicated and you should know what it is, how it works and what happens when it is triggered-