Mental Stop - futures trading

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Mental Stop

A mental stop is when a computer order is not placed to exit a trade for us, but instead we leave the position open with no offsetting order to control our loss. A stop order is not placed, but the trader still has a level in mind where he or she will exit a losing position (or a winning position using a trailing mental stop).

A soft stop can also refer to a mental stop that is not at a fixed price. The trader may have a range of values in mind where he or she will exit based on market conditions.


As opposed to a Hard Stop

See also:
Created by  steve2222 , April 15th, 2016 at 05:59 AM
Last edited by  steve2222 , April 15th, 2016 at 06:00 AM
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