Stop orders are a crucial trading tool that allows you to “limit losses,” “protect winnings,” and “surf the market’s flow.” Make sure you master it and put it to good use.
It’s worth noting that when a stop order reaches a certain rate, it becomes a trigger, or “trigger,” and is executed as a market order at the current rate.
As a result, the agreement does not necessarily have to be at the same rate as the stipulated rate. It may be performed at a rate that is significantly less beneficial than the stipulated rate, depending on market conditions. When you open the window in the direction of loss growth at the start of the week, there’s a chance the order will be established at a rate that differs from the set rate.
Keep in mind that even if you use a stop order to restrict your losses, you can end up with losses that are more than you anticipated.
