How does a stop limit stock order work if set at 10-%?

Question

If I put a stop limit sell at 10% does that mean it will sell when it drops to 10% of its high since my purchase?

Answer 1

To enter a stop limit sell order, you must specify the price at which you want to sell the stock (you can't use a percentage number). So, for example, if you bought a stock at $20/share, and you wanted to limit your loss to 10%, you would enter a sell stop limit at $18/share. If the stock trades at $18 or less, your order then becomes a sell order at $18.