Hello Everybody, I would like to ask a question regarding the stop loss option and I think it would be best described using an example. If I was to open a trade at 200$ (for example) and I would select the stop loss option at 120$ and buy the end of the day the stock would close at 150 and than open the next day at 100. Would I sell the stock at 120 or 100? Thank you for your help.
Most market stop losses will fill at the opening price which would be $100. There are limit stop loss order where you could specify 120, or 118, 116 to limit you sale price loss, but in this case it wouldn't trigger a sale if the opening bid/ask was 101/99 if the opening was 100 and you cold go down even farther since you would still own it. Remember opening gaps sometimes back fill after the open.
