What are "Stops"?
When you place a “stop,” your trade will be executed only when the security you want to sell reaches that price. For instance, with a hard stop, if you own stock ABC, which currently trades at $20, and you place a stop order to sell it at $15, your order will only be filled once stock ABC drops below $15. There are trailing stops as well that measure the stop price in comparison to the close price of the day before and will sell when there is any drop over a certain percentage.
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