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How do I enter a Sell Stop Order?

When an investor wants to protect its position in a given stock, he or she can set a sell stop order with a price below the current market price. If the stock price reaches the stop price, a market order is activated, and sold at the best price available


Example


ABCD stock is trading at $10 per share. You, as the investor, understands that if ABCD trades below $5, the stock price could go even lower. Therefore you would like to sell your shares of ABCD when they reach $5. You can set a sell stop order with a stop price of $5, and as soon as the stop price is reached,  a market order is activated, and sold at the best price available. If ABCD stock price never reaches $5, your stop order won’t be executed.


Here is the step by step on how to enter a stop order:

  1. Open your Passfolio app
  2. Select the stock you would like to trade
  3. Tap Buy or Sell
  4. Tap on Stop
  5. Choose the Stop price
  6. Tap Continue
  7. Choose the expiration date
  8. Tap Continue
  9. Choose the amount of shares
  10. Review your order 
  11. Submit order

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