If the Stock Market will open below Stoploss?
June 23rd, 2011I’m currently Studying about Share Market. I’ve a doubt that – If the Stock Market will open below Stoploss, what is results? & can any one kindly give me an example of future Trading (Simple) (if PPT or FLV is best)
there is a thing called a guarenteed stop loss. That means if or when the stock gaps below your stoploss, you are still triggered out and do not lose the difference. Now you pay a high premium but it will save you for very big gigantic losses if this does happen or the market sells off significantly over night without you being able to control anything. Such as a big news event, or like when Japan had the massive earthquake, you cannot control these events and the markets react to them heavily.
June 23rd, 2011 at 4:33 pm
It will sell at your stoploss level. It is your limit so can not go beyond the set level. No matter what.
References :
June 23rd, 2011 at 5:18 pm
It depends on what kind of order you use as a stop loss order.
If you are using a Stop Market Order, then it would have triggered and closed out at market price the moment market open below the specified stop price.
If you are using a Stop Order, then it would have turned into a limit order at the specified price and will trigger only if the price goes back up to that level. Which means that you could go deeper and deeper into loss if the market continues to go lower.
References :
http://www.futurestradingpedia.com/futures_orders.htm – Free tutorial on Futures Orders
June 23rd, 2011 at 5:29 pm
If the stock market will open below stoploss than all the shares will go down.
References :
http://www.sirfpaisa.com/
June 23rd, 2011 at 6:16 pm
there is a thing called a guarenteed stop loss. That means if or when the stock gaps below your stoploss, you are still triggered out and do not lose the difference. Now you pay a high premium but it will save you for very big gigantic losses if this does happen or the market sells off significantly over night without you being able to control anything. Such as a big news event, or like when Japan had the massive earthquake, you cannot control these events and the markets react to them heavily.
References :
http://www.forecastfortomorrow.com/Trading-Club
June 23rd, 2011 at 6:26 pm
It depend on ur trade …whether you are long or short …if u are holding short position in futures then it will be beneficial for you if market will open below ur stoploss and fall more and more …
References :
http://dhanvarshagrp.blogspot.com/