Orders

Stop orders can be used for three purposes:

• to minimize a loss on a long or short position,
• to protect a profit on an existing long or short position, or
• to initiate a new long or short position.

A buy stop order is placed above the market and a sell stop order is placed below the market. Once the stop price is touched, the order is treated like a market order and will be filled at the best possible price.

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