4 ms·

Stop loss is really the wrong term mathematically. In truth, a "stop loss" is really better thought of as a "max price". If you set it up to sell when the price

• tekknik 6y ago
  There are also stop limits, vs stops which just sell at market. there’s also OCOs and OSOs that can make things interesting.
  • freeone3000 6y ago
    with a stop limit, you'll simply be left holding the stock if it drops below your limit. depending on what you expect the market to do, this could actually leave you in a worse position (ex, if the value keeps dropping). I'm sure you know this, but, understanding your exit from a speculative position is just as important as your entry.
• FabHK 6y ago
  To be precise: As soon as a trade <= 320 is printed, the stop loss turns into a market sell order. It could sell over 320, it could sell under 320 (though much more likely the latter).
• dragonwriter 6y ago
  > If you set it up to sell when the prices drops to $320, you are guaranteed that it will sell at a price below $320, not that it will sell at $320. IIRC, that’s closer than the naive interpretation (“you will sell at exactly $320 if the price drops to or below that level”), but it's still not quite right. Unless I'm mistaken, a stop-loss @ $320 is actually “if the price is at or below $320, submit a market sell order”. In theory, it could execute above $320, though at or below is vastly more likely. And, as you note, you aren't guaranteed it will execute at all.