How to Set Stop Loss for a Trade? | Order Types on Moomoo

Meta Moo joined discussion · Nov 20, 2019 10:12

05/15 Update

When you are trading in the stock market, losses will happen. Remember to cut loss no matter what, this is the only way to have a positive account.
How to set stop loss for a trade? This question was highly mentioned recently as the moomoo family grows, so here we would like to bring this post up again for newly joined moomooers to know 4 order types on moomoo, hope it hleps.
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There are several order types can be provided on Moomoo. We can choose what kind of orders we want to place after we click the "Trade" button.

How to Set Stop Loss for a Trade? | Order Types on Moomoo

LMT Order

The most common and useful one is "LMT Order". Limit order will be executed when the price reach to the price you specified or there is a better price.

Let's take the following stock "AAPL" as an example.

Firstly, we need to choose the type of "LMT Order" of the specific Symbol. Then we specify the price you want to invest in. Here, we enter "262.64" as the specified price, and choose "2" as the quantity we want to buy. The total amount of money "525.28" will be automatically calculated. When the price of "262.64" of "AAPL" can be offered by the market or reach a better price than "262.64", then this order will be executed.

MKT Order

Market order do not require a specified price and are bought or sold at the current market price.

The market price will calculate the pending order price according to the current price of *1.3, and your purchasing power will be reduced accordingly. After the order is cancelled or cancelled, the frozen purchasing power will be released.

Let's take the following stock "AAPL" as an example.

Firstly, we need to choose the type of "MKT Order" of the specific Symbol. Then we specify quantity you want to invest in. Here, we enter "2" as the specified quantity. The order will be executed according to the market price, but the amount of money can not be calculated when you place the order because the executed price can not be determinded, and your buying power should reach to "262.64*1.3=341.432" in order to place such "MKT Order".

Conditional Order(Stop)

“Stop" order is a special “condition-triggered” order that requires a specified up/down price (trigger price) and the actual order price. Once the stock price reaches the trigger price, the system will automatically submit the specified order to the exchange (equivalent automatically submit a normal order).

Let's take the following stock "AAPL" as an example. We firstly should choose "Conditional Order".

Secondly, we choose "Stop" Type to place the order.

Here the trend is set to "Rise to", and the trigger price is "263.08", we also need to set the order information, including the "Action" of buying and selling, "Price type" (market price, limit price), "QTY" quantity. Here we set the order action as "Buy", and the price type is "LMT", price is "263.1", quantity is "2". When the price reach "263.08", the set order will be automatically submitted.

Conditional Order(Trailing Stop)

Trailing Stop is a more advanced type of “condition-triggered” order that requires a trailing amount to be specified in order to create a moving stop price. The stop price (trigger price) of this condition will be adjusted continuously as the stock price rises until the breakdown triggers. When the trigger price is reached, the order can be submitted at the specified price.

Let's take the following stock "AAPL" as an example. We firstly should choose "Conditional Order".

Secondly, we choose "Trailing Stop" type to place the order.

Here we set the "Trailing Amount" as "5", the stock price now is "262.64", so the initial triggered stop price is "257.64".

We also need to set the order information after the trigger, including the sell price("MKT", "LMT"), specified spread, quantity.

When the stock price falls but does not penetrate "257.64", the preset order will not trigger.

When stock price continue rise to "270.00" and the stop price will be adjusted to "265.00".

When the stock price falls back and penetrates "265.00", the condition will trigger.

Here we as we set the "Specify Spread" as "0.5", and it is a "Limit order" so the order price will be triggered and placed as "264.50".

I hope the above can answer your questions. If you have any questions and suggestions about the moo community, we also expect you to leave us comments or publish them in the moo community, and we will try our best to answer them positively. Thanks!

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