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rlcallison,

Scroll down to the bottom of the page and look to the left. You will see a highlight item that says Online Glossary List. You will find really good info there from three different sources.

But to answer your questions:

Stops as I think you are asking about are called a stop order which is a ....

A market order to buy or sell a certain quantity of a certain security if a specified price (the stop price) is reached or passed. see also stop-loss, stop-limit order, buy stop order, stopped out. - from investorwords.com

It can help to limit losses or lock in gains on shorting or going long on a stock. You should be able to place a stop order with your broker. You would need to talk with them about the fees involved.

They basically work like this. You go long on a stock and you buy it at $20/share. You decide that you will only accept a $5/share loss on the stock, so you set a stop-loss order of $15/share.

I hope this helps.

Fool On,
tangerine
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