Trailing total returns investopedia forex

Talks End With China Warning Trade Benefits at Risk if U. Trailing total returns investopedia forex network of expert financial advisors field questions from our community.

Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A celebration of the 100 most influential advisors and their contributions to critical conversations on finance. The latest markets news, real time quotes, financials and more. The order specifies that an investor wants to execute a trade for a given stock, but only if a specified price level is reached during trading. Such orders are designed to limit an investor’s loss on a position in a security. For example, let’s say you are long 10 shares of Tesla Inc.

You want to continue holding the stock so you can participate in any future price appreciation it may see. Rather than watching the market five days a week to make sure the shares are sold if Tesla’s price drops, you can simply enter a stop-loss order to essentially monitor the price for you. What Price Is Used to Trigger the Stop-Loss? The only risk involved with using a stop-loss order is the potential risk of being stopped out of a trade that would have been profitable, or more profitable, if the trader had been willing to accept a higher level of risk. Can You Use Stop-Loss Orders When Shorting? Stop-loss orders can also be used to limit losses in short-sale positions.