Can someone explain the basis of this? From what I have googled is that you would use this stop loss in a position trade so no to get caught out from spikes in intraday. However how does it actually work?
Say i buy into silver at 39.50 with a stop at 38.50. Now in intraday trading the price dips to 38.19 and closed at 39.10. Now I gather that your stop does go through since its only on close, but what happens if it closes at 35.50? does that mean your stop gets gets activated at 35.50?