During short how stop loss can be higher than entry?

Trading
1

During short how stop loss can be higher than entry?

2

because you only make loss when underlying price goes above your entry price.

3

When you are short on stock, you make profit when price goes down and make loss when price moves higher, hence for short trades SL is higher than entry price.

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5

Stop-loss is a method that is used by traders to limit their losses. To figure out where to put stop loss depends on individual risk appetite.

There are 3 methods to put stop loss in trading :-

  1. Percentage Method
  2. Support Method
  3. Moving Average Method