When you place a stop loss do you in theory push the stock price down?

0 ⤊

When you place a stop loss do you in theory push the stock price down?

If I place the order 5% below the current trading price Am I not creating a ask price lower and pushing the bid lot lower also?

2006-11-12 17:48:57 · 2 answers · asked by cmac 2 in Business & Finance ➔ Investing

2 answers

No.

A stop-loss order is a market sell order that is triggered if the price hits your strike price. There is no outstanding "ask" order on the breadth tables.

2006-11-12 17:57:34 · answer #1 · answered by csanda 6 · 0⤊ 0⤋

Nope.

THe stock only sells at the price if the trading price reaches the level.

Will

It doesn't "pull it down."

Will

2006-11-13 02:43:50 · answer #2 · answered by b r 4 · 0⤊ 0⤋