This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook, published on August 29, 2013.
October LIVE CATTLE
Buying on some recent support and an old resistance level. Playing the 20 day moving average (gray). STOP will be just below the 50 day moving average (blue).
BUYING at 127.00 on a STOP order (day order) …last trade 126.90
- Risk will be the 126.00 level …($400.00)
- OBJ will be the 129.00 level …$800.00
Initial margin for this contract is $1,012.00
Have a look:
It may not be possible to limit losses to the exact loss limit depending upon market conditions and the possibility of limit moves.
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STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
This material is conveyed as a solicitation for entering into a derivatives transaction.
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