Stop order

A stop order becomes a market order once price passes the level you set.

A buy stop sits above the current price, a sell stop below it. They are used to join a move once it has passed a level.

Because it turns into a market order, the fill can be worse than the level when the market is moving fast.

Also called: buy stop, sell stop

Related terms

Limit orderStop lossSlippage

A definition, not financial advice. Trading carries a risk of loss.

All 64 terms