Why Stop orders are used in KSE?

1 ANSWERS

1. Guest4213
   

   This type of order enables you to buy or sell shares within a specified range once a price you determine has been reached and is a type of limit order. If, for example, you decide you want to buy shares at a specific level above the current market price you can ask your broker to place a contingent stop buy order. If you want to sell your shares once the price has dropped below a pre-determined level you can place a contingent stop sell order. This type of order can be useful if, for example, you are a momentum trader and want to reduce your exposure to a stock as prices fall or increase your holding as prices rise. Read more about momentum trading in strategies for investment.

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