Buy stops are generally placed above the actual market price. intended for example:
You are generally short March soybean futures at $8.50. you want to risk 10 cents towards trade or even $500 (5,000 bushel contract x .10 = $500). you would area a buy stop order at $8.60 to be able to limit the losses for you to 10 cents towards the trade.
You are generally short March soybean futures at $8.50. you want to risk 10 cents towards trade or even $500 (5,000 bushel contract x .10 = $500). you would area a buy stop order at $8.60 to be able to limit the losses for you to 10 cents towards the trade.
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