Skip to content

Stop-Loss Limit

April 1, 2017

An order placed with a broker to sell a security when it reaches a certain price, below the current price thus stopping your losses.

The initiation of hedges above a certain loss level is an alternative form of a stop-loss limit called drawdown control or portfolio insurance.

Advertisements
Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: