Two relatively simple techniques that investors have to protect themselves from loss in these situations are stop-loss orders
and short sales.
Most investors don't realize that they can name the amount they're willing to pay for a stock, or that they can accept on the sale of shares by using stop-loss orders
While a stop-loss order
can prevent a big loss, it can also prevent a big gain, kicking you out of a solid stock just because it had a temporary hiccup.
Although Congress ended the draft in 1973, it subsequently authorized stop-loss orders
as a way of retaining personnel with combat experience and special skills.
For example, if you buy XYZ company stock for $50, you might place a stop-loss order
at $40, limiting your downside on the stock to $10 per share, which would be 20%.
There are rumours that there is a large stop-loss order
in the market at around $1,010, but so far this has not been tested.
The current trading range has not changed but the pressure remains on the downside as a fresh sell stop-loss order
There are rumours of a large stop-loss order
in the market at around this area which, if hit, could take prices on a quick upward spike.
The Order finds that from at least February 2008 and continuing through at least September 2014, DB AG, by and through certain precious metals traders, engaged in a scheme to manipulate the price of precious metals futures contracts by utilizing a variety of manual spoofing techniques with respect to precious metals futures contracts traded on the Commodity Exchange and by trading in a manner to trigger customer stop-loss orders
Wreaked Havoc On Digital Currencies
Morgan Stanley (NYSE: MS) is believed to have asked staff to consider using stop-loss orders
if indications from the market suggest an increase in volatility.