Understanding Stop Loss Orders
Monday June 2, 2008
When the bottom falls out of your favorite stock’s price a stop loss order on file with your broker can help ease the pain.
A stop loss order instructs your broker to sell when the price hits a certain point. The purpose of the stop loss is obvious – you want to get out of the stock before it falls any farther.
Comments
What I dont understand is stop limit orders .I thought a limit order was enough.