Ask Experts » Finance and Investments » Stock Market »

Meaning of stoploss, trigger price, correction

Date: 17 Jan 2011   Group: Finance and Investments    Category: Stock Market   


Please tell me the meaning of the following words.

Stoploss

Trigger price

Correction



Find Answers

Author: Mohammed Ilyas    21 Jan 2011      Member Level: Silver     Points : 4  (Rs 3)    Voting Score: 0

Hi Kameswari,

These are the terms used in the Stock Market and listed the details below.

1. Stoploss: It mean if you have purchased the stock expecting that it will increase the value but all of sudden it is decreasing for which you share value is coming down. You dont know how much it can go down so it is always better to plan how much you can afford to loose for that particular trade than put the stoploss to cut your heavy losses to limited loss.

2. Trigger Price: It mean you have a plan to buy a share when it is at 110 rs but presently stock is trading at 115 so you put a trigger price of 110 so that once the stock reaches to this price yous trading terminal will generate automatic buy signal on your given trigger price.

3.Correction: People will expect that price will touch too high and keep buying the stock but stock experts does the calcuation based on the companies various ratios to come to the correct price of the share value of particular company. After some time share value will come down to correct as per the experts views. this is called correction.

Hope it is clarified.

Regards,

Ilyas

Answers      





Post answer or solution to "Meaning of stoploss, trigger price, correction"

You can earn revenue online from Google AdSense and our revenue sharing programs by post valid, self written answers for the problem Meaning of stoploss, trigger price, correction




You must Sign In to post a response.


Next Question: What is the minimum investment ammount in stock market and how does it work? Is it legal?
Previous Question: How major events in day to day life affects Stock market?
Return to Question Index
Ask Question to Expert
Category: Stock Market

 
Related Questions
Popular Tags   What are tags ?   Search Tags  

Awards & Gifts
Active Members
TodayLast 7 Daysmore...

ISC Technologies, Kochi - India. Copyright © All Rights Reserved.