Bracket Examples
Combining a Profit Exit and Stop Loss Exit
- Buy: 100 shares Dell @ 25.00
- Profit Exit: 10% (2.5 pts) and will trigger the order if price reaches 27.50
- Loss Exit: 5% (1.25 pts) and will trigger the order if price drops to 23.75
Combining a Profit Exit and a Trailing Stop Exit
- Buy: 100 shares Dell @ 25.00
- Profit Exit: 10% (2.5 pts) and will trigger order if price reaches 27.50
- Trailing Stop Exit: 10% (2.5 pts) and will trigger order if price drops 2.5 points from any price below 27.50, or if the price only drops from 25.00, the exit would trigger at 22.50
Combining a Stop Loss Exit and a Trailing Stop Exit
- Buy: 100 shares Dell @ 25.00
- Loss Exit: 10% (2.5 pts) and will trigger order if price drops to 22.50
- Trailing Stop Exit: 5% (1.25 pts) and will trigger order if price drops 1.25 points from any price above 23.75 (22.50 + 1.25); Loss exit would kick in first if price were equal to or below 22.50
Using All Three: Profit, Trailing Stop, and Stop Loss Exits
- Buy: 100 shares Dell @ 25.00
- Profit Exit: 10% (2.5 pts) and will trigger order if price reaches 27.50
- Loss Exit: 5% (1.25 pts) and will trigger order if price drops to 23.75
- Trailing Stop Exit: 5% (1.25 pts) and will trigger order if price drops 1.25 points from any price above 25.00 (23.75 + 1.25); Loss exit would kick in first if price were equal to or below 23.75 or profit exit would kick in if price reaches 27.50.