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Stop Method Illustration

Default vs Trade Through

This example shows what effect changing your Stop Method preferences will have on your stop loss orders depending on which direction you are currently in the market. Stop Preference can be found within the Preferences – Order Entry window.

You are long and have a sell stop order to close the trade with Default as your stop method. Once the BID price touches your stop price, you'll be stopped out at the market (BID price).

You are long and have a sell stop order to close the trade with Trade Through as your stop method. Once the ASK price touches your stop price, you'll be stopped out at the market (BID price).

 

You are short and have a buy to cover stop order to close the trade with Default as your stop method. Once the ASK price touches your stop price, you'll be stopped out at the market (ASK price).

You are short and have a buy to cover stop order to close the trade with Trade Through as your stop method. Once the BID price touches your stop price, you'll be stopped out at the market (ASK price).

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