Stop losses tend to be a great type associated with futures order The idea an trader countries to be able to limit his losses from any Particular futures trade. from futures contracts The item a great trader buys, he would area a stop loss somewhere below his access price. with regard to contracts This a great trader is actually short, a great stop loss would always be placed somewhere above your own admittance price.
For example, a great futures trader buys single contract associated with silver at $650. He only wants to be able to risk $700 towards the trade. Therefore, he would place a sell stop loss order on $643. whether precious metal futures trade at $643, the stop loss order is actually executed at the current market price. your current trader will be not guaranteed to obtain crammed from exactly $643, because stop loss order becomes the market order after your current stop price can be hit.
For example, a great futures trader buys single contract associated with silver at $650. He only wants to be able to risk $700 towards the trade. Therefore, he would place a sell stop loss order on $643. whether precious metal futures trade at $643, the stop loss order is actually executed at the current market price. your current trader will be not guaranteed to obtain crammed from exactly $643, because stop loss order becomes the market order after your current stop price can be hit.
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