HOW TO USE A STOP LOSS ORDER

Stop loss order is very beneficial order in the online stock trades. Each and every investor and trader of online stock trades must know all about the stop loss order. It must be understand well that when, why and where this order should be used.
This order is used in online stock trades market for controlling trading loss intensity. This order is set over a certain percentage of prices up to which loss is acceptable. After this percentage level stop loss order is executed to prevent further losses. Stop loss order is known as stop order or stop market order in the online stock trades.
For example, if you are setting your loss limit in stock trades up to 10% below the actual price of the stock, than your losses in online stock trades will always be limited around 10%. Stop loss order of online stock trades will help you to realize your losses earlier to maintain your business trades strategies for future. You can use this order even when you are on holidays and not able to check out your status in the online stock trades market.
In stop loss order a specific stop price is defined by the trader of online stock trades. Once this price is prevailed in the online stock trades market, stop loss order will automatically execute in the online stock trades.  
Stop loss order can be used for two purposes; selling and buying. An order used for selling purpose in the online stock trades is known as Sell stop order and the order used for purchasing purpose in the market is known as buy stop order. Sell stop order is use to sell out the stock in the market at maximum price after the actual price went down the stop price in the online stock trades.
Sell stop price is always observed below the market price while the buy stop price is always available on the price above the online stock trades price.