yvajotefihy.web.fc2.com - Ideas for Teachers - The Stock Market: Risks & Rewards

This ratio is calculated mathematically by dividing the amount the trader stands to lose if the price moves in the unexpected direction the risk by the amount of profit the trader expects to have made when the position is closed the reward.

A stop-loss order is a trading trigger placed on a stock that automates the selling of the stock from a portfolio if the stock reaches a specified low. Investors can automatically set stop-loss orders through brokerage accounts and typically do not require exorbitant additional trading costs.

Since the trader stands to make double the amount that she has risked, she would be said to have a 1: Stop-loss orders allow investors to place a sell trigger on their investments at essentially only the trading cost of the block trade.

For example, if a conservative investor seeks a 1: In this case, in the trading example noted above, if an investor has a 1: Dictionary Term Of The Day.

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Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Stop-Loss Order Sterling Ratio Combined Ratio Ratio Analysis Key Ratio Aggregate Stop-Loss Insurance Accounting Ratio Operating Ratio Efficiency Ratio.

Calculating Risk And Reward

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