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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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 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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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.
Meddings: My recommendations are to be careful in the design of the catheter orders and catheter stop orders. 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.
Stop order: An order that becomes a market order to buy (buy stop) or to sell (sell stop) when a stock trades at a specified price, known as the stop price.
Two protests in July were forcibly dispersed by police after talks between Hanoi and Beijing, but subsequent rallies were allowed to go ahead until authorities in the Vietnamese capital on Thursday issued a stop order.
A stop order was issued at 11.45pm banning landowner Noah Burton from carrying out more work without permission.
The company, which paid more than $1 million (BD37,800) for the footage after legal costs and other expenses, nearly premiered it last year at the private Berwick Academy in Maine but abruptly scrapped the screening after the school received a stop order from Ono's lawyers, who assert copyright ownership of the videotapes.
Uber Philippines has the 'burden' to find a way to comply to the competition review, even though this may seem inconsistent with the stop order from another government agency, a top official of the Philippine Competition Commission (PCC) said.
Ducey wants to create a Severe Threat Order of Protection, or STOP order, by which law enforcement, family members or other individuals can petition the court to order that a person's firearms be temporarily confiscated.
Recommendation: buy Severstal's shares at 184.0 rubles with a view to selling at 400.0 rubles per share (+117.39%); stop order is at 178.0 rubles (-3.26%); time horizon is 24 months.
Instead of putting a $24.50 Stop Order, you can instantly put a 50 cent Trailing Stop.