Trading Up-Close: Stop and Stop-Limit Orders

When it comes to managing risk, stop orders and stop limit orders are both useful tools, but they aren't the same. Join Kevin Horner to learn how each works and when is the right time to use one over the other.
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[@khuynh87]

you have no idea how much I appreciate all theses videos. working on getting my certification and self teaching is not easy. THANK YOU CHARLES SCHWAB

[@CharlesSchwab]

Great job finding us. Make sure to also check out the Trader Talks by Schwab Coaching as well. There are live classes every day and most are recorded and posted later to review at your convenience. We are here to help. ^CH

[@jeffreyfernandez2037]

They didn't help me for crap.

[@szamee83]

@@CharlesSchwab where can I find Trader Talks by Schwab Coaching?

[@LikesToRider]

same

[@cr34t0r1234]

@@CharlesSchwab so when it comes to crypto that has no down hours. using stop order is enough?

[@Otis-the-III]

Excellent content! Just made my 9th withdrawal from the market! I can't tell you how glad I am that I got into trading after being introduced to it last year. Yeah risk management is KEY!

[@JoeCoIIar]

Dude you're Killing it! In trading I believe your #1 priority should be risk management. There are 1000s of strategies out there but the real difference between a profitable trader and a non profitable one will be how they manage their risk during trades. Learning how to let your winning trades run and how to cut your losses short will significantly increase your chances of profitability in the long run

[@MrChuujitsu]

Thank you! Been looking for a very simple explanation!

[@dewaynec1845]

Thank you!! I watched 5 other videos about this topic and was still confused until you explained it! Thank you for using visual references!!

[@Bluespicygreen]

Great video! Informative and short video straight to the point. Personally a simple stop order works for me.

[@stevegustafson8040]

Thank you for this. Studying for series 65 and this is the best explanation of stop limit orders I've seen.

[@iamric23]

would of preferred a tutorial on the Schwab website actually placing a trailing stop.

[@mr.grantsartexplorations1014]

Thanks, I finally get it… after hours was not something I thought about

[@williamthomas8135]

I still can't figure it out. there must be more videos about this topic that explain selling when things go up, and buying when they go down. At least thats been my tactic since Oct 31 bull market started. I don't sell stocks that go down, unless I am desperate about something, such as the video mentioned advantages and disadvantages.

[@khariwalls895]

Appreciate it for posting! Looking for guidance: My TRX Wallet holds some Tether USDT, and I know the seed phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. Could you suggest how to handle transferring them to Upbit?

[@Donmarion]

I needed to see this💯

[@weirdshibainu]

Best explanation of the differences. Thank you

[@NovaScotiaLegend]

This was an extremely well explained video,

[@williamthomas8135]

Does this only apply to prices going down, buy or selling?

[@liakella]

Thank you for sharing

[@philippetrape9295]

Very clear video. Thank you very much.

[@strygomil]

finally, a good explanation! thanks

[@aevoss]

I’ve watched several order type videos and I still don’t understand the difference between limit stop limit and stop loss. It looks like to me. They’re all the same. I’m so new at this. I don’t know why I’m not understanding.

[@aim8265]

Can a stop limit be added for profit? Stop at 100 limit 150 so would sell the best price between 1010 and 150? Or the max it reaches to; let’s say it reached to 140 only. Or the order will be for 150 and if it’s not reached the shares won’t be sold? Thanks

[@CharlesSchwab]

A stop-limit order typically ensures that you get the price you set, but it doesn't guarantee that your trade will go through. As a result, you could be left holding shares worth far less than you anticipated. Employ a stop-limit order if you are willing to hold the shares if you can't get your desired price. ^MF

[@bzflowerbee]

Thanks a lot. So, doi need to set up two stop limit order if i wanted to sell it no less than $x and sell when it goes up to certain point?

[@CharlesSchwab]

That could be accomplished using an OCO bracket order, with a Limit order to sell at the target, and a Stop Limit to sell if the price goes down. ^BW

[@MySimpleNYCLife]

Thank you, for this easy to understand video! ❤

[@87andsmith]

so im struggling to understand the advantage of a stop limit besides the uniquness of saving you from a afterhours dip which triggers a sell on a standard stop order. Besides that, is a stop the most common way to protect you from a loss?

[@CharlesSchwab]

One of the reasons for using a stop limit order might be to address the situation of a gap down rally. If the stock gaps down below the limit and bounces back, the stop wouldn't fill at the lower price. ^BW

[@Edd_Talks]

Great explination! Thanks.

[@cilcy849]

Where can I find how to put stop losses on option orders

[@CharlesSchwab]

Here's a great webcast that teaches exactly that concept! kzbin.infohBCcE8iszeA?si=Mrdl23MbYtyj7YXm ^BW

[@carlotadias9335]

Very well explained ! Thank you !

[@arinnfc]

what trading do you use?

[@CharlesSchwab]

The trading platform is the thinkorswim Desktop software platform. ^BW

[@RobinD0903]

So for 24 hour markets, a stop order is pointless right? From what I’m understanding, the stop order prevents large losses from when the market is down and the stock price drops

[@CharlesSchwab]

If you have a sell stop order on a stock and it opens substantially lower, the order will be sent to the market and compete with other orders for a fill. In this scenario, the stop order may not prevent large losses from occurring. ^MF

[@RobinD0903]

@@CharlesSchwab Understood, thank you for the response!

[@FernandoGarcia-lg9fh]

Thank you Charles Schwab!

[@ana_coexistcrypto3998]

Wonderful video, thank you!

[@time2vhow]

can you set a stop to sell higher than what you bought it for?

[@CharlesSchwab]

Yes, you can setup potential exit orders above and below the entry price. ^MF

[@TedThomson-xd8vk]

i'm having an issue with placing a stop loss to mitigate loss and also placing a sell limit to collect profit at a certain % at the same time. I get a notification about having orders for more shares than i have. Any way to make one automatically close when the other one is filled?

[@CharlesSchwab]

Here's a great webcast from Schwab Coaching that discusses exactly that issue. kzbin.infoQNYr-arjh_0?si=slyUjVoaZaZlxMXJ ^BW

[@benbraceletspurple9108]

Using timer for the limit is smarter. If the patern changes while you aren't watching, you don't have to enter it.

[@TwiztedHumor]

But how do you set a timer after you enter? Maybe a conditional order that fires contingent on you buying.... But again, how to match this timing to when you buy?

[@CharlesSchwab]

After submitting an order you can change it to add a timer if wanted. ^CH

[@TwiztedHumor]

@@CharlesSchwab thanks! I see its a new feature now!

[@Dicemann123]

Great Explanation, Thanks

[@austinrichardson7433]

Does this matter for crypto since the market never closes?

[@CharlesSchwab]

Order types still matter regardless of what market asset you are trading. ^CH

[@jaywoodzzz94]

Are you related to Klaus?

[@BubbaFromTexas]

What does Distance for Market mean and it has percentage ? Does it have to be 100% How long does it take ?

[@CharlesSchwab]

We assume you mean the distance a market order can go. A market order is set to trigger when the price is hit however if the stock opens lower than the set order the fill can be lower than the price set in the order. Market orders can be placed a percentage below a price point and that percentage is up to you. ^BC

[@k5siah24]

You made that so confusing wth is the limit for if it can just go right below the limit

[@CharlesSchwab]

There is a difference between the trigger of an order (price it falls to) and how the stop is executed, either as a market stop or limit stop. They each have their pros and cons so you'll need to determine which one is right for which situation. ^CH

[@auliazhraaa9]

wow cool thanks for sharing

[@adelyoussef7588]

finally someone made it simple )

[@Mte75]

Thank you 🙏 god video 😊

[@dr1344]

Who is this spokesperson? He looks familiar to me--has he been in other commercials or acting gigs or anything?

[@CharlesSchwab]

This is Kevin Horner, a Schwab Coach. ^MF

[@Barker-sf5zw]

Market makers and other traders cannot see a stop order since it simply triggers a market order. So they can be good for large orders since market makers will sometimes employ "stop hunts" to help increase liquidity. A stop hunt is where the market makers will manipulate the price so as to trigger the filling of stop-loss orders if they see a bunch of them clustered together. But these sneaky bastards are good at figuring out where stop orders are likely to be based on other factors, and if they're motivated enough to try and sweep them out, they're going to find them.

[@firstime]

Anyone could teach me what is a LIMIT PRICE and STOP PRICE when I place an order? I know LIMIT is the price must be higher than LIMIT if I am correct, but what is a STOP?

[@CharlesSchwab]

In a limit order you specify how high you are willing to buy. In a buy stop order, you are wanting to hit a specified higher price (such as a breakout above a resistance area) before you want to be filled on the trade. ^CH

[@Nanfius]

it is the same concept for bitcoins?

[@CharlesSchwab]

Stop and stop-limit orders are order types used on a majority of trading platforms however not all platforms offer bitcoin trading.^BC

[@BelieveWhatyouwant]

Do it work the same for buying as it do for selling?

[@syaluuuuu2]

wow cool

[@pppaulie73]

In other words, if you own a volatile stock, you better have your eyeballs on it all the time. These orders guarantee nothing.

[@ravman1184]

I never used these tools , and it cost me 75% of my stock . [ money ]

[@TomBTerrific]

Basically there are no guarantees in life.

[@TheOne-xu5oy]

Made a huge mistake in trading, now I know fully what a stop limit order is smh. Wow lol.

[@MrSpeedyNYC]

This video is does not make a lot of sense without mentioning aftermarket and premarket hours and trades.

[@ninjakris3004]

This is telling us how but not showing us how to actually do it.

[@CharlesSchwab]

Hey Nin. Here is a link to a beginner level order entry webcast. kzbin.infocyf_QQBekWs?si=KB8xkkbtVFclU25E He will be demonstrating real time with the thinkorswim software and creating orders. This should help. ^CH

[@Krista-k5v]

YOUR COMPANY IS UNDER COURT CASE TORTS FOR CRIME DISCRIMINATION AND HARMS

[@MrSmartboy1983]

Shut up

[@RichardT.D07]

Curious can u enlighten us with more info on this or maybe a link ??

[@Renovegas6109]

Who cares

[@mchaudhry9974]

People don't want to see a talking head - better explain on showing concrete numbers and how that works

[@differencebetween6823]

What part you didn't understand 😢. They way he explained, school children can understand

[@mchaudhry9974]

@@differencebetween6823 Needs to give a certain examples. For instance: 1. Opening price for today is predicted at $1.00. 2. I want to buy this stock today at cheapest price possible 3. I guess and believe that price after opening will go down about 8%. 4. I put a buy stop market order at $ 0.91or any other number. And so on... And better to make a some sort of drawings on a board or paper showing where the stop market order starts and where it fills. Same with stop limit order. Simplicity makes people genius

[@VonKirda]

Now explain how full time traders can rip off retail traders using their stop orders

[@CharlesSchwab]

Hello and thank you for reaching out. While we can only offer limited support through social media, our specialists are happy to assist. To discuss your concern with a broker, please call 800-435-4000 or initiate a secure chat session on Schwab.com, available 24/7. ^CH

[@tudorrenegade7052]

Great explanation, thanks !

[@navidfarshi]

poor video