I'm just interested in how a stop loss works with a trade...
Is it
1. That when a stop loss is setup on a position, then a corresponding (opposite) trade is placed on the market. For example, if I take a long position, then when I configure my stop loss and make the trade, a corresponding short trade is placed into the market.
2. When I take a position, IG markets monitors the price of the instrument and when the price moves too far in the wrong direction an order will be placed to close my position.
3. Something else.
Thanks