Tuesday, 27 November 2012

HOW TO PUT STOP LOSS IN OPTION?

A stop loss is an order placed with a broker to sell a security when it reaches a certain price and is designed to limit an investor's loss . A good stop based on closing prices is one that is placed 3% below a rising trend line. The stop is triggered only if the stock closes at or below the stop....
There are three primary ways to set a trailing stop, two of which reset automatically. The three trailing stop methods are: 
·   A percentage below the current price; The trailing percent stop trails price movements by a set percentage, but only in the direction of the trend. 
·   A fixed number of points below the current price
·   A specific stop price based on a technical indicator or support level that you adjust as the price of your stock raises. 


1 comment:

  1. Really very good post, Thanks for the information.

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