Stop order

Updated 2026-09-20

Definition

An order that activates only when price reaches a specified level: buy stop above price, sell stop below.

Why it matters

It's used to enter on a breakout or, as a stop loss, to exit at a loss. Once triggered it becomes a market order.

Practical example

Resistance at 1.1050: a buy stop at 1.1052 enters only if price breaks it.

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Full glossary

Educational content, not financial advice. Trading involves risk.