Stop order


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Stop order (or stop)

An order to buy or sell at the market when a definite price is reached, either above (on a buy) or below (on a sell) the price that prevailed when the order was given.

Stop Order

An order to a broker to buy or sell a security at the best available price once a certain, stated price is reached. Suppose that price is $50. A stop order remains inactive until that security begins trading at $50, at which point the broker may fill the order at best price he/she is able to find. See also: Stop-limit order, Stop-loss order.

stop order

1. An order to buy or to sell a security when the security's price reaches or passes a specified level. At that time the stop order becomes a market order and the executing broker, usually the specialist, obtains the best possible price. A stop order to buy must be at a price above the current market price and a stop order to sell must have a specified price below the current market price. See also buy stop order, electing sale, protective stop, sell stop order, stop-limit order, stop price, trailing stop.
2. An order from the SEC suspending a registration statement when an omission or a misstatement has been found.

Stop order.

You can issue a stop order, which instructs your broker to buy or sell a security once it trades at a certain price, called the stop price.

Stop orders are entered below the current price if you are selling and above the current price if you are buying. Once the stop price is reached, your order becomes a market order and is executed.

For example, if you owned a stock currently trading at $35 a share that you feared might drop in price, you could issue a stop order to sell if the price dropped to $30 a share to protect yourself against a larger loss.

The risk is that if the price drops very quickly, and other orders have been placed before yours, the stock could actually end up selling for less than $30. You can give a stop order as a day order or as a good 'til canceled (GTC) order.

You might use a buy stop order if you have sold stock short anticipating a downward movement of the market price of the security. If, instead, the price rises to the stop price, the order will be executed, limiting your loss.

However, there is a risk with this type of order if the market price of the stock rises very rapidly. Other orders entered ahead of yours will be executed first, and you might buy at a price considerably higher than the stop limit, increasing your loss.

References in periodicals archive ?
If the underlying market gaps and doesn't trade at the level of the Guaranteed Stop then the Guaranteed Stop order will still close the trade at the level of the Guaranteed Stop.
I recommend a stop order if they have the capability in the system, rather than reminders, because reminders can be ignored, and the stop orders cannot But we suggest that the IT people work with the clinicians in designing the order and really look at it carefully before they implement it, because often what they design turns out to be not the final product And it's not as simple as it appears, particularly when it comes to taking previously handwritten orders and automating them within the EMR.
At the hearing, Lacson pointed out that Mike Sabban, a technical assistant at the office of Faeldon, could request special stop orders.
A stop order was issued requiring the employer to immediately discontinue using employee labor at the restaurant.
Garin said they had begun practicing the stop order (suspension of transactions on payment of claims), suspending payments to healthcare providers while there is an investigation.
Warren Digby, the Managing Director of the FG Solutions International, cited an example: "For instance, you buy a stock at $25 and want your risk to limit at a 50 cent loss, instead of putting a stop order at $24.
The project was at a standstill at Makongo Juu and Tangibovu in Kinondoni municipality following a court stop order after some residents filed a case demanding more compensation, he noted.
After review of the company's response, Jasareno said the stop order was sent to Marcventures Mining and Development Corp.
BOFE issued a Stop Order to discontinue business until proof of workers' comp was provided.
That Lawson's Registration Statement on Form S-4 in the United States, which will register the shares of Lawson common stock to be issued pursuant to the Offer, has become effective under the Securities Act of 1933, as amended, and is not the subject of any stop order or proceeding seeking a stop order;
Place a stop order 10 pips below the support line (to cater if the trend breaks) 6.