stop price
(redirected from Stop Prices)Stop Price
The price at which a stop order becomes a market order. A stop order is an order to buy or sell a security at the best available price after a certain, stated price is reached. The stated price is called the stop price. See also: Limit price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
stop price
The price specified in a stop order at which the stop order becomes a market order. A stop price at which to buy is entered above the current market price and a stop price at which to sell is entered below the current market price.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Stop price.
When you give an order to buy or sell a stock or other security once it has reached a certain price, the price you name is known as the stop price.
When you ask your broker to buy, your stop price is higher than the current market price. When you're selling, the stop price is lower than the current price.
In either case, once the stop price has been reached, your broker will execute the order even if a flurry of trading drives the stock's price up or down quickly. That might mean you end up paying more than the stop price if you're buying or get less than the stop price if you're selling.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.