Stop order

An order that only wakes up at a set price

In detail

A stop order triggers on the opposite condition to a limit: sell if the price falls to a level, or buy if it rises to one. It lets you act at a price you decided in advance without watching the market. It is most often used to keep a loss from widening past a point you chose.

Example

Buy at $1,200 and set a stop to sell at $1,100, and the sell order goes out the moment the price touches $1,100.

Related terms

Limit order Cutting losses Market order Trailing stop

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.