A stop-loss order is a conditional order to sell a security once it reaches a certain price. It operates as such:
- Investor sets a trigger price for the security and submits the order
- When the share price reduces to the trigger price, the order is put into the market
- The order is then filled when the now-live sell order is filled
This type of order is used to limit an investor's losses and doesn't require the investor to be actively watching the market.
What are the different 'price type' options?
Market Then Limit
This will place the order in the market at the last price at which the shares traded.
Once the order enters the market at the market price, the limit condition ensures the order is not filled if the share price falls below the market price set on the order.
Allows the minimum order price to be set for SELL order.
How do I enable the stop-loss feature in my account?
To enable stop-loss orders on your account, you need to accept an additional set of terms and conditions from our partner, OpenMarkets. This setting can be found on the settings section of your account:
Log in > Avatar > Settings > General > Advanced Orders