Tag: limit your losses

What Does Take Profits Mean In Stocks

When it comes to stocks, there are a lot of terms and phrases that can be confusing for beginners. One such term is “take profits.” What does it mean, and what implications does it have for stockholders? In essence, “take profits” means to sell a stock that has appreciated in value in order to lock […]

What Does Cover Mean In Stocks

What Does Cover Mean In Stocks? When a stock is said to be “covered,” it generally means that the holder of the stock has also purchased a put option on the same stock. A put option gives the holder the right to sell a stock at a set price (the “strike price”) within a certain […]

Stocks What Is A Limit Order

A limit order is an order to buy or sell a security at a particular price or better. For example, if a trader wants to buy a security at $10, they would place a limit order to buy at $10. A limit order to sell would be placed at a higher price. A limit order […]