Comparing Protective Puts and Stop Loss Orders
Hedge and Acquire StockStop loss orders and protective puts handle a falling market differently. Drawing on floor-trading experience from 1987, OIC instructor Roma Colwell unpacks ways each order type might behave during a sudden price drop.
0:00 A Trading Floor Story From 1987
1:02 Pros and Cons of the Protective Put
1:38 How Stop-Loss Orders Work
1:55 Stop-Loss Market vs. Stop-Limit Orders
3:16 When a Market Stop Fills Far Below Your Trigger
4:51 The Risk of a Stop-Limit Order
5:43 Understanding the Risks of Each
Register to view the complete The Investor's Safety Net – Protective Puts Explained webinar:
https://bit.ly/3RfvRR6.
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