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A trader places a limit order at $35.47 for 100 shares. If they set a stop...

A trader places a limit order at $35.47 for 100 shares. If they set a stop loss at $33.20 (Assume that all stop losses get filled) what is the most amount of money they can lose on that trade

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Answer #1

A buy limit order will execute the trade at $35.47 or lower. (Considering $35.47 here, to calculate most amount of money they can lose)

Buying price = 100*$35.47 = $3547

A stop loss order will execute the trade at $33.20

Selling price = 100*$33.20 = $3320

Most amount of money they can lose on that trade = $(3547-3320) = $227

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