Can someone please explain stop limit orders and the point of them? Charles Schwab says:
"To enter a Sell Stop Limit Order, you must enter a Stop price below the current security price and a Limit price less than or equal to the Stop price. If the security trades at or below the Stop price, the Limit Order to sell the security you entered will be activated."
To me, this means that if ABC is trading at $110 and I want to ensure that it is sold if it hits $100 to stop my losses, then I would set a stop price of like $102 or something and a limit price of $100.
But on Robinhood, it looks like the stop limit order is used for a situation where ABC falls to a stop price, then rises to a limit price and is then sold.
Which is the correct way to set this up and am I correct in assuming this can be used as a stoploss? Thank you.
Submitted February 03, 2023 at 02:19AM by federerfan309 https://ift.tt/xLtPdMj
