If you bought a security at $10 a share and its price then rose to $30,you might wish to protect your profit by placing a stop-loss order at,say,$28 a share.

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Quizplus · Accepted Answer

This is true as a stop-loss order at $28 would allow for a potential profit of $18 per share. It would trigger a market sell order if the price fell to $28, therefore protecting the profit made from the initial purchase at $10 per share.

If You Bought a Security at $10 a Share and Its