Stoploss Market - SL MKT
This is one of the most widely used intelligent orders and is most frequently used if the investor decides to minimize his or her losses and to manage their trades while exercising money management.
Example of use:
There are two basic methods for using a Stoploss order:
For a sell order: the investor has purchased securities but wants to sell these securities if their market value declines by 2% based on his or her investment strategy. This means a predetermined loss is ensured and the investor does not have to worry about a long-term decline in the value of his or her portfolio by a greater percentage.
For a buy order: the investor anticipates that if the price rises above a specific level (e.g. price rises above resistance) a growth trend will emerge and it is likely that the price will continue to strengthen. If the price does not reach this level the investor has no desire to buy the security.
Placing an order:
An investor has bought a security at USD 10.00. Currently the best bid (best price at which the investor can sell the security) is USD 12.00 (the investor realizes a profit of 20% on the security). The investor wants to "preserve" a profit of 15% and wants to sell the security if the best bid drops to USD 11.50. The investor then places a Stoploss market order. This means that such an order is completed after activation for the best possible bid or offer until the satisfaction of all the bid or offered securities. If an investor wants to complete a Stoploss order at the worst by the entered Limit Price - a Stoploss Limit - SL LMT intelligent order must be used.
According to the investor's goals a sell order is placed. In the order parameters, "Stop Price (USD") appears below the "Price (USD)" field. Enter the activation price for the Stoploss order into the "Stop Price (USD)" field (in our case the best bid is USD 11.50). Nothing is entered into the "Price (USD)" field for a market order.
ORDER PARAMETERS:
Direction: Sell
Stop Price (USD): USD 11.50
Quantity: 2,000 shares
| Price (USD) | Cumulative number of shares | |
| 12.30 | 8,000 | Offer |
| 12.22 | 5,000 | |
| 12.10 | 3,000 | |
| 12.06 | 2,000 | |
| 12.05 | 1,500 | |
| Middle | ||
| 12.00 | 100 | Bid |
| 11.95 | 850 | |
| 11.90 | 1,300 | |
| 11.80 | 2,000 | |
| 11.77 | 5,000 |
| Price (USD) | Cumulative number of shares | |
| 11.80 | 8,300 | Offer |
| 11.75 | 4,000 | |
| 11.65 | 3,500 | |
| 11.60 | 2,000 | |
| 11.55 | 1,000 | |
| Middle | ||
| 11.50 | 1,500 | Bid |
| 11.40 | 2,500 | |
| 11.35 | 2,800 | |
| 11.20 | 3,900 | |
| 11.19 | 5,500 |
| Price (USD) | Cumulative number of shares | |
| 11.80 | 8,300 | Offer |
| 11.75 | 4,000 | |
| 11.65 | 3,500 | |
| 11.60 | 2,000 | |
| 11.55 | 1,000 | |
| Middle | ||
| 11.40 | 500 | Bid |
| 11.35 | 800 | |
| 11.20 | 1,900 | |
| 11.19 | 3,500 | |
| 11.17 | 5,000 |
