You bought IBM stock at $70 per share.It is now $120 a share.You think it could go higher but you are nervous that it could go down and you would lose your gains.To protect your gains but still give yourself the chance to make future profits,you could place a

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A sell stop order at $110 a share would allow you to protect your gains by automatically selling the stock if it drops below $110. This limits your potential losses while still allowing for some room for the stock to potentially continue to rise. A limit order to sell for $130 a share would not protect your gains if the stock were to drop before reaching that price. A limit order to sell for $110 a share would not protect your gains if the stock were to drop below $110, and a sell stop order at $130 a share would not provide enough protection for your gains as the stock is currently priced at $120.

You Bought IBM Stock at $70 Per Share