Learn how stop-loss orders limit losses and protect profits by automatically selling or buying securities when a specific price point is reached.

As an example of how this would work, if a stock is currently trading at $50 per share, an investor might set a buy limit order at $45. If the stock’s price drops to $45 or lower, the order is ...

Different types of stop loss orders provide varying control over trade […] The post Stop Loss Order: How It Works, Pros and Cons, Examples appeared first on SmartReads by SmartAsset.

For example, a stop-buy order is used to purchase a stock only after its price rises to or above the stop level, often signaling upward momentum. This allows investors to buy into a stock after ...