Instruction. It is a basic trading order as important as limit order and market maker order. Although this order has been widely used abroad and played a huge role, most investors simply don't know how to issue and make full use of this extremely important trading order-the patron saint of trading.
Many of our investors have the concepts of risk and stop loss, and the stop loss price is the key price of the stop loss order. When this trading order is issued, the investor issues a conditional liquidation order for the original position. For example, Mr. Wang bought Shanghai Natural Rubber with a contract of 10 and 6 10, and the transaction price was 25,000 yuan/ton. After the transaction, the price changed. Considering Mr. Wang's own trading style and risk tolerance, he thinks that when the price drops to 24,200 yuan/ton, the market will break quickly. In order to avoid the loss caused by being caught off guard when placing an order at that time, he issued a liquidation order through the trading system and sold Shanghai Tianjiao 6 10 lot 10 lot at a price of 24,200 yuan/ton. When this order is issued, once the market hits 24200 or the price is lower than 24200, the order will be placed automatically at the first time.