The Stop Loss Order is used to protect your profits on a stock that is rising. You decide the price you want to close an instrument at and instruct Plus500 to close the position if this price is reached.
There are four ways to enter a Stop Loss Order.
1. You enter a trading price. For example, if your stock is selling at $40 per share, you could enter a Stop Loss Order for $37.50 per share. When the stock price drops to $37.50, it trips the Stop Loss Order and Plus500 sells it.
2. You enter a maximum loss amount. Plus500 will then calculate the relevant Stop Loss price.
3. You enter the distance in Pips from the current price. Plus500 will then calculate the relevant Stop Loss price.
4. You enter a percentage from the current price. Plus500 will then calculate the relevant Stop Loss price.
Monday 14 March 2011
Protect Your Profits
Source : Plus500.com
