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A stop-loss order is a directive to a broker to sell a security when it falls to a certain point. An example: You bought 1000 shares of Acme common at 18. Acme then rose to 36 on strong sales of instant holes. Instant holes are a great product, but you have an uneasy feeling about them, so you tell your broker "if Acme falls to 32, sell all of it." If this happens, you "stop your loss" by selling the stock. A week later, when Acme fell to 12 on the news Charles Manson used Acme Instant Holes to escape from prison, you're sitting pretty because your broker dumped your entire Acme holding at 32.

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Q: What is stop loss selling?
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Related questions

What do you mean by buying stop loss and selling stop loss?

It's an order to your broker to sell a position if it drops below a certain amount. A buying stop loss sounds like you'd have an order in to buy stock if it drops below a certain amount, which is very much like selling puts.


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I live in Va. They stop selling it at midnight.


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