A stop order involves telling your broker to make a transaction. You say, "If shares of AAPL get to $195, sell all my shares."
A soft stop order is more informal. It's not a hard, specific number. Also known as a mental stop, it's more of a signpost. Like, "You know, if Apple gets to $195, I should really consider selling."
So, when shares reach that level, the transaction doesn't happen automatically. You can make a decision based on events. Re-evaluation. "You know...I can probably wait to see if it gets to $200 and make the decision then."
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Finance: What are Limit Order, Sell Limi...4 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
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