Question

Have we forgotten the stop loss order to buy ?

Answer 1

An order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. If you sell an option, you can set a buy-stop order. If the stock trades at that price or higher, the options are bought at the market price, limiting losses. You may prefer that the option must trade at, or through, your limit price. That's how a stop-loss order is triggered when trading the stock.