Stop Order

Posted on February 11, 2011 by Thomas DeGrace

Stop Order is a market order to buy or sell a stock at a specified price.

Understand How Stop Order Works

A Stop Order can be used to protect your losses in a market downturn.  Say for example you bought at stock at $50 and wanted to limit your losses to 10%.  Then you would place a stop loss order on the stock at $45 a share.

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