A stock that you purchased at a price of $22 per share has risen to $46 per share. You wish to avoid losing all of your profit while still allowing an opportunity for additional gains; therefore, you should put in a sell stop order at a price of

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A sell stop order is placed below the current market price to limit loss or protect profit on a stock that you own. By placing it at $40, you allow for some additional gains while protecting most of your profit, since the order will be executed if the stock falls to $40, preventing a loss back to the original purchase price or lower.

A Stock That You Purchased at a Price of $22