How To Place A Stop Loss on the Chart for an Existing Position
Placing a Stop order from an existing position on the chart is the quickest way to implement a portective stop loss. Using click and drag on the position line lets a user define the stop loss visually based on the chart itself.
1. Click the Position line on the chart to initiate the Stop order
2. Drag the new order line to the desired price level
The on-chart order ticket shows
- The stop price
- The approximate cost of the trade
- The potential loss at that stop level.
3. This Sell-to-Close (Stop) Order uses a Close Position order ticket
This drag and drop procedure automatically initiates a Close Position order ticket (note the yellow Sell button). The yellow line represents the Stop price level which when hit releases a market order to Sell the position.
A close position order ticket automatically:
- Selects the correct position size for the existing position.
- Places the order on the right side of the market (e.g. a sell-to-close order for a long position; a buy-to-cover order for a short position)
- Places the order in an OCA (one-cancels-call) order group with any other Sell order on that existing position.
4. Click and Sell button
5. Confirm to Place Order
If the Stop price is reached, the stop will trigger a Market order which will sell the position at the next available market price.
6. Modifying the Stop Order
To modify the Stop price level, click the order line and drag to the desired new price level.
Release the mouse button and click Modify to change the Stop to the new price level
The trading tools work on either a LIVE brokerage account or a PAPER (simulated) trading account. Live market trading requires an account with TC2000 Brokerage (www.TC2000Brokerage.com).