i have heard about the stop loss fixation along with the target price.
when we use say, for example, i am using bracket order leverage futures of the following
reliance industries limited: buy price:1400
target price: say, 1450
now, some people like to place the distance between stop loss and target price equal to the bid price and ask price difference.
my question is:
- what is bid price and ask price.
- does it really makes sense to put the stop loss and target difference equal to bid-ask spread?
- what advantages does it have over the normal last support based stop loss and
- does the bid -ask spread difference is equal to the lower and upper circuit price difference?