What is a limit / stop-loss order?
A ‘limit’ order sets either a maximum or minimum price for an order, at which you are prepared to buy or sell shares, these can either be just for that trading day or any number of days afterwards. What is a stop-loss order? (Premium account only) At the moment you buy a share you can place a stop loss on it. This allows you to specify a price, in a falling market, at which you would like that share to be automatically sold. In other words you specify the minimum price at which you are willing to hold the stock. This is an excellent way to safeguard your investment and minimise any losses on that share. E.g. Lets say that you buy a share at 110p and set a stop loss of 100p. If the price falls to 100p we will automatically sell those shares. Your limit can last for up to 30 days and you can renew it as often as you like.
