Can you use a Stop and Stop Limit Simultaneously?
I am paper trading ForEx and tried to use a Stop to protect myself and then a Stop Limit to try and take profit, but I ended up setting myself to sell twice what my position was so I had to cancel one of them ......
Can you set both up and how?
I might be wrong but the "Stop" order will close your actual position when a certain level is hit. Same goes for "Take Profit".
The "Stop Limit" order is related to the opening of a new position when a certain level is hit (stop limit always has be lower than the actual price of the instrument).
Yes you can. I don't think you understand how the stop limit order works, which means you shouldn't be using it. It's a bit hard to understand where you went wrong without looking at the trade, so if you could explain what orders you placed you'd get more help. It doesn't have to be the real numbers, just something to understand the logic.
Sure. So, once I had entered into a position with a plan of where I wanted to exit, and where I would cut my losses. I set a stop so that if it went the wrong way on me I could cut my losses, and then I made a stop limit so that after it hit where I wanted to exit, I would. On the upper left of my screen it said I had a position of 50,000 and just right of it a sell order of 100,000. 50 for the stop and 50 for the stop limit
You would need to have "contingent" order capability such that if one order fills the other order is cancelled. You would use the stop order for the downside protection and just use a limit order for selling at the price that is currently higher than the market. This way you dont oversell.
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