Stop Loss Buy Order at Buying

Stop Loss Buy Order. The stop is below your buy price on a long stock and above your sell price on a short stock. It can be defined as a sell order placed in advance for an asset to be sold when it reaches a certain price point.

A buy stop order is most commonly thought of as a tool to protect against the potentially unlimited losses of an uncovered short position. For the short side, the price would be on the opposite side of the stated direction. A buy stop loss order is designed to protect short positions.

Difference Between Stop Loss and Take Profit Forex Education

For the rest of the article, we’ll focus on the long side. When the stop price is reached, a stop order becomes a market order. When the stop price is reached, a. The stop is below your buy price on a long stock and above your sell price on a short stock.