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Stop Order

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.

A direction by a customer to a stock Broker, directing the broker to wait until a stock reaches a particular price and then to complete the transaction by purchasing or selling shares of that stock.



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lt;/li> </ul> A buy stop order is placed above the market and a sell stop order is placed below the market.
But by using the stop order functions common on many online trading platforms you can minimize losses and lock in profits if markets move against you.
It’s much more difficult for EOD (end of day) traders to avoid whipsaw price action like this without their stop orders getting hit.
 
 
 
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