Common use of Loss-limiting Orders or Strategies Clause in Contracts

Loss-limiting Orders or Strategies. Placing orders, such as a “stop-loss” order, intended to limit losses to a predetermined amount, may not achieve their purpose because market conditions, such as high volatility or lack of liquidity, may make it impossible for your order to be executed. Strategies using “spread” positions (such as “long” and “short” in different delivery months for a commodity, or in different, but related, commodities) may be at least as risky as outright “long” or “short” positions.

Loss-limiting Orders or Strategies. Placing orders, such as a “stop-loss” order, intended to limit losses to a predetermined amount, may not achieve their purpose because market conditions, such as high volatility or lack of liquidity, may make it impossible for your order or der to be executed. Strategies using “spread” positions (such as “long” and “short” in different delivery months for a commodity, or in different, but related, commodities) may be at least as risky as outright “long” or “short” positions.