Stop order

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Related to Stop Orders: Trailing Stop, Stop Loss Order, Limit Orders

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 market they are trading moves against their position and across the level of their Stop then the Stop order will close the trade and limit the investor's losses.
You can also create a stop order, which, when it's generated, orders that the catheter be taken out, unless the patient meets a criterion or set of criteria at the time the reminder is generated and the clinician sees that reminder.
The first part of the order is written like the above stop order. The second part of the order specifies a limit price.
It describes the three main categories of order types: market orders, limit orders and stop orders, and the different forms these orders can take when enhanced with time restrictions and other conditions.
Check out Working With Trailing Stop Orders to Protect a Portfolio on ThinkAdvisor.
These adaptable characteristics allow application users to key in their limit orders and stop orders in a non-difficult interface in opportune and protected manner.
The Tepo directed all quarry operators to stop operations and government agencies, like the DENR, to enforce the stop orders.
from the outset and provide investors with a range of intelligent order types, such as trailing stop orders. We are confident that together with our market participants we will be able to continue our growth path, said Christian Schurlein, managing director of Tradegate Exchange.
Talking Points * Japanese Yen: Rise in Risk Aversion Leads Yen to Break Below 108.00 * Pound: Breaks below 1.80, Triggering Stop Orders * Euro: Retail Sales and Manufacturing Slump * US Dollar: Fed's Kroszner and Hoenig's Speech On Tap After peaking to 1.4720 in the early Asia session, the EURUSD pulled back to hold near 1.4640 as crude oil prices slipped below $117 a barrel, helping to strengthen the US dollar.