Jan
19
How Do I Automatically Sell Stock When It Drops To A Certain Price?
Posted by admin Comments (5)
I understand limit orders for buy as it only buys when it is at a set price or lower and sell when it reaches a certain price or higher. But is there a way similar to limit order to automatically sell only if it reaches a certain price or lower? Ex: If I buy stock at $20 a share and wishes to sell if it falls to $15 or lower, is there an option to do this? Thanks in advance.
Tags: Certain, Stock, Price
Categories: All About Selling
Just put an order in to sell the stock at $15 stop.
If you put a stop limit on the order, “15 stop limit, the stock can sell through your limit and not get executed.
An order at 15 “stop” will cause this to become a market order when the stock drops to 15
Most firms will accept “trailing stops”, you can enter the order at either at points below the current market price or at percent point below the current market price – as the stock moves up so does your sell limit
There are two options.
1. Stop Limit – Meaning that once the stock reaches this price, sell it.
2. Trailing Stop – You can set a trailing stop to follow the stock up or down. You can set it to a $5….This allows your stop limit to follow along the price of the stock while going up. So if the price goes to 21, your stop limit goes to 16 and so If the stock starts to drop, the trailing stop remains at 16…and once hit sold.
Hope that helps
Use a stop order to sell a stock if it’s at a higher price and it falls within a limit.
You can use it after buying a stock to protect your investment if it starts trading lower than you expected.
Yes, there are “sell” limit orders. Check with your brokerage.
You need to set a limit order.