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> Stop loss orders aren't “like” market orders, they are market orders with a triggering event. A few things about this sentence are wrong, don't worry, market
by chollida1 9y ago
> Stop loss orders aren't “like” market orders, they are market orders with a triggering event.
A few things about this sentence are wrong, don't worry, markets can be tough to figure out:)
1) By your very sentence you agree they are the same but different?????
2) I never said stop loss orders behaved as market orders, I said they were alike in that most people shouldn't be using them.
4) There isn't 1 type of stop loss.
There is stop loss limit, in which the user specifies a price that the stop loss is triggered and then a limit price that the order is active to. This is sometimes called a stop limit order.
Or stop loss market in which only one price is given, this is the price at which the order translates into a market order. This is sometimes called a stop market order.
Does this clear things up?
- dragonwriter 9y ago> There is stop loss limit, in which the user specifies a price that the stop loss is triggered and then a limit price that the order is active to. This is sometimes called a stop limit order. Every professionally-published source I've seen—whether documentation for particular exchanges supported order types, discussion of the relative merits and caveats of given order types in trading-oriented outlets, etc. has consistently referred to this as “stop limit” and reserved “stop loss” for an order in which a market order is triggered by the stop price. It looks like the other points of apparent disagreement are connected to this different understanding of the terminology.