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| A stop placed in th e market is to "Stop " losses incurred from the market going against you. For instanc you buy on the futures to control a sudden loss one puts a stop below the market price, On the other hand if one is shorting the market one puts stops above the market price to keep from losses being incurred if the price goes up further than what you are comfotable with. The function of a stop is just as it impl;ies, To be stopped out is to stop from having any further losses incurred. | |
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Sell stop
