STOP and LIMIT ORDERS Explained In Forex | Trade Forex The Right Way 💵🥇

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What is a Stop-Limit Order?
A stop-limit order is a conditional trade over a set timeframe that combines the features of stop with those of a limit order and is used to mitigate risk. It is related to other order types, including limit orders (an order to either buy or sell a specified number of shares at a given price, or better) and stop-on-quote orders (an order to either buy or sell a security after its price has surpassed a specified point).

How Stop-Limit Orders Work
A stop-limit order requires the setting of two price points.


Stop: The start of the specified target price for the trade.
Limit: The outside of the price target for the trade.
A timeframe must also be set, during which the stop-limit order is considered executable.

The primary benefit of a stop-limit order is that the trader has precise control over when the order should be filled.

The downside, as with all limit orders, is that the trade is not guaranteed to be executed if the stock/commodity does not reach the stop price during the specified time period.

The stop-limit order will be executed at a specified price, or better, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better. This type of order is an available option with nearly every online broker.

Features of Stop and Limit Orders
A stop order is an order that becomes executable once a set price has been reached and is then filled at the current market price. A traditional stop order will be filled in its entirety, regardless of any changes in the current market price as the trades are completed.

By combining the two orders, the investor has much greater precision in executing the trade.

NOT FINANCIAL ADVICE DISCLAIMER

The information contained here and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
3 سال پیش در تاریخ 1400/05/14 منتشر شده است.
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