what is reverse stop loss?

Discussion in 'Trading' started by positive100, Mar 30, 2012.

  1. Hi all,

    I have been trying to find about the reverse stop loss and the function of it,,, but couldnt find anything so far...

    Only about stop loss/order, no Reverse stop loss :(

    If there is anyone who knows about it or know the webpages where i can find some info about this please let me know,

    Thank you..

    and do u have any idea what other orders / as i know, the stop loss is one type of order/ can replicate the reverse stop loss? it doesnt have to be orders but any other product?

    Thank you in advance...
  2. lwlee


    Never heard the term before but I'll take a stab.

    After you're stopped out, you immediately take a trade in the opposite direction. Reverse stop-loss.
  3. Thank you
  4. I think you will find it more commonly referred to as "stop and reverse"
    There isn't a special order for them as far as I know. You either just:

    1) Increase your stop position size beyond your current position. When the stop is filled, you will now be "reversed" by whatever amount beyond your initial position.

    2) Use a sequence of orders to close your initial position and reverse it (TOS allows this, others maybe as well). This would be done if you wanted to do something other than the price you stopped your initial position.

    P.S.: Make sure you deal with any outstanding orders from your initial position. It's pretty easy to forget one and get nailed later on by something that should have been canceled. OCO are a good way to do this, but they take more effort to set up.
  5. thank u, i will look as stop&reverse loss then
  6. I've heard of reverse breakeven stops wherein if you lose a certain amount, typically less than your stop loss, you immediately try to get out at breakeven when you've reached that level.

    Reverse stop loss is probably a reverse breakeven stop.
  7. jo0477


    No, Goonior is spot on - OP is looking for an SAR. Pretty sure very few brokers offer this order type, so if you want to reverse on a stop instead of market, just double your stop (using 1 car as an example) and if/when you're filled - stopped and reversed. Nothing to do with breakeven...