buy stop order(redirected from Buy-Stop Order)
Buy stop order
Buy Stop Order
A stop order that becomes a market order to buy a security if it rises above its current price. That is, a buy stop order is not executed so long as the security is at or below the price when the order was made, but is executed at the best available price when it rises above that order. An investor who makes a buy stop order operates on the premise that if a security rises, it will likely continue to rise. In other words, the maker of a buy stop order hopes to profit from a security's upward momentum.
buy stop order
A customer's order to a broker to buy a security if it sells at or above a stipulated stop price. This type of stop order can be used to protect an existing profit or to limit the potential loss on a security that has been sold short. Compare sell stop order.