to achieve that by: * By providing you A-Z of Technical Analysis and Fundamental Analysis training, * By Giving you tools, Strategies and Indicators to know the markets better, * By Providsing you a Demo trading platform free of cost to test the. A trade order tells a broker when to enter or exit a position. You are waiting for the right selling opportunity when the price reaches 210 or higher to sell for profit. Reason : If the price reaches the limit price, there is an assumption that the price will continue to rise. Margin Stop order Finally, Margin Stop order can serve as an effective method in forex market, if the broker uses it prudently though it is used less than other money management strategies. Recognizing the suitable order type for the circumstances will aid in locking profit and reducing loss. Equity Stop order Equity Stop order is definitely the easiest of the four stops orders. Example : Stock is currently trading at 200; stop price at 190. Updated: September 13, 2017 5:10.
Therefore, it is extremely important that the broker use smaller lots to size his or her joint risk in the trade. However, the equity stop order puts an arbitrary exit point on a trader's position - and this is it is only but a great weak point. Sell Limit vs Sell Stop Both sell limit and sell stop are important orders you need to understand in order to make a decision when to sell. The volatility stop also lets the broker use a scale-in approach to get a better "blended" price and a faster breakeven point in this following Figure. Example : Stock currently sells trading at 200; limit price at 210. A limit order allows an investor to set the minimum or maximum price at which they would like to buy or sell, while a stop order allows an investor to specify the particular price at which they would like to buy or sell.