What is it called if I want to have a stock automatically be set to sell?
Question:
Do I need a special account to do this normally? I'm having trouble with my online broker arranging this, they want to do a credit check and whatnot which I understand if I'm buying on margin, but not for this.
Answer:
Stop loss order -An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.
Good idea when your not able to watch your stocks or options minute to minute or on a daily basis.
It's called a sell stop order...or a sell stop limit order...the brokerage runs credit checks now no matter what...it's to see if you a can pay for the stock...or if your buying from a credit card account which you can't do.
Its a stop order like the others have said. But be very careful with this...you dont want to put this number too high as the stock could dip to that price temporarily during the day and guess what? You just sold all you shares at the day low! If you cant watch your stocks throughout the day it can be a good tool but unless your investing in a shaky company you shouldn't really need it. Best of luck to you.
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