Which market orders to meet this recommendation : 'Take a position on the purchase of the fooBar share, protect your capital by placing a stop'
I'm just getting started in the process of learning how to trade.
I just wanted to know how should I interprete the following sentence :
"Active investors will take a position on the SYNERGY share over €43.90 with a target of € 49.99 in line of sight.
They will protect their capital by placing a stop at €40.99."
Does this mean :
1) To issue 1 stock market order (instructing both on how much to pay and when to sell the stock option (may it reaches a price too low)) ?
2) Or to issue 2 distinct stock market orders :
• 1 to buy
• 1 to sell
Which types or orders (Market, Limit, Stop, Conditional...) would you issue to follow this instruction ?
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You would place a stop buy market order at 43.90 with a stop loss market order at 40.99 and a stop limit profit order at 49.99.
This should all be entered when you place your initial buy stop order. The buy stop order will triger and be traded once the price reaches 43.90or above. At this point both the stop loss market order and the stop limit profit order will become active. If either of them is triggered and traded the other order will be cancelled automatically.
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