How does stop loss work?
Stop loss is a function for completing automatic trading. In addition to a traditional stop loss, Nordnet also offers a smooth stop loss.
A stop loss consists of two parts.
1. A condition you want must be met before you can complete a trade. The condition may be that the stock must rise or fall at a certain price. Only when the condition is met will your stop loss be activated. The condition is also called a trigger rate. With a sliding stop loss, you do not specify a price in kroner and øre, which activates the order. Instead, you specify the percentage increase or decrease that should activate your order. Your order is activated when the highest or lowest price has been reached after the order time.
2. A price you will pay when the terms are reached. It is this price at which the stop loss order will be sent into the market. In the case of a sliding stop loss, you specify instead how large a deviation must be between the order and the price that activated the order (the trigger price). In order for the deal to go through, there must of course be buyers or sellers at the price you have specified.
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