If you need to be sure you will sell your shares of a certain stock if the price drops below a certain threshold,which type of order should you place?

Question

Quizplus · Accepted Answer

A Sell stop order is designed to protect against losses by automatically executing a market sell order when the price of the stock drops below a certain threshold, which is specified by the investor. This is a useful tool for limiting potential losses on a stock that may be experiencing price volatility. Limit orders and market orders to sell do not offer the same level of protection against price drops. Short sell orders are not relevant in this scenario, as they relate to betting against a stock's price rising rather than protecting against losses.

If You Need to Be Sure You Will Sell Your