Hello,
I’m looking for some help with Stop limit Sell orders.
I’m trading on Sofi and they do not offer a Stop Loss when selling shares. Would setting up a Stop Limit with a low limit value be basically the same thing? I am looking to protect myself from a possible large drop in value and limit my losses to 5%.
I know a Stop Loss will turn into a market order and sell at the Market price when the target is hit. Typically I would set the Stop Loss at -5% of the stock value and be done.
From what I understand for the Stop Limit, when the stop target is hit, the limit order will activate as long as it’s above the limit price. Does that mean if I set the limit really low will it basically trigger at the market price? For instance if I set the stop at -5% the value of the stock and the limit at -50% the value of the stock. Are there any downsides to doing this?
I appreciate any thoughts anyone has on this.
\-BB
