Definitions with S

• Stop Out

  What is Stop Out? The term Stop Out in trading refers to the automatic closing of positions by a broker when the trader’s margin level falls below a predetermined threshold. It acts as a safety mechanism to minimize the risk of further losses and to protect both the trader and the broker. When a trader […]

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• Stop-Loss Order

  What Is a Stop-Loss Order? Traders use a stop-loss order to limit loss or secure a profit on a current position. This order helps manage risk. A stop-loss order instructs to close a position by buying or selling a security when it hits a specific stop price. This differs from stop-limit orders. Stop-limit orders specify […]

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• Stop-Limit Order

  What Is a Stop-Limit Order? A stop-limit order combines the features of a stop order and a limit order to mitigate risk. It relates to limit orders and stop-on-quote orders. How Stop-Limit Orders Work The trader controls precisely when the order fills, but execution isn’t guaranteed if the stock doesn’t hit the stop price. A […]

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• Short Selling

  What’s Short Selling? Short selling is when you bet that a stock or another security will drop in price. It’s a pretty advanced move and not for beginners. Here’s how it works: You borrow shares of a stock from a broker and sell them. Later, you hope to buy the same number of shares back […]

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• Short Hedge

  What’s a Short Hedge? A short hedge is a way to protect against the chance that the price of something you own, like a stock or commodity, will go down in the future. It’s like an insurance policy for investments. Companies and investors use this tactic to lock in a sale price for something they’ll […]

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