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Assume that you bought a stock at Rs 1,000 apiece. Right after buying the stock you enter a stop-loss order for Rs 800. If the stock falls below this level (Rs 800), your shares will then be sold at the prevailing market price.
Can I set a stop loss above current price?
A buy-stop order is a type of stop-loss order that protects short positions; it is set above the current market price and is triggered if the price rises above that level. Stop-limit orders are a type of stop-loss, but at the stop price, the order becomes a limit order—only executing at the limit price or better.
Can you set a stop loss in premarket?
Stop orders will only trigger during the standard market session, 9:30 a.m. to 4 p.m. ET. Stop orders will not execute during extended-hours sessions, such as pre-market or after-hours sessions, or take effect when the stock is not trading (e.g., during stock halts or on weekends or market holidays).
Can you cancel a stop loss order after hours?
Limit and stop orders may stand for hours or days before being filled depending on price movement, so these orders can logically be canceled without difficulty. Market orders are a type of order that is very unlikely to be canceled.
When should a stop loss be set?
Once you have inserted the moving average, all you have to do is set your stop loss just below the level of the moving average. For instance, if you own a stock that is currently trading at $50 and the moving average is at $46, you should set your stop loss just below $46.
What percentage should I set a stop loss?
There are no hard-and-fast rules for the level at which stops should be placed; it totally depends on your individual investing style. An active trader might use a 5\% level, while a long-term investor might choose 15\% or more.
How do you take stop loss?
A stop-loss is designed to limit an investor’s loss on a security position. For example, setting a stop-loss order for 10\% below the price at which you bought the stock will limit your loss to 10\%.