Stop Order, can be used to initiate a new position as well as close an existing position. It's an order to sell or buy when the market reaches a specified price. A stop order to purchase becomes a market order when the asset trades at the stop price or above the stop price. The stop order to sell becomes a market order (MO) when the asset trades at or below the stop price.
Stop Order
More terms under S
- Scalp
- Settlement Price
- Short
- Speculator
- Spot
- Spreading
- SEC
- Selling Rate
- Selling Short
- Short Position
- Simple Moving Average (SMA)
- Slippage
- Society for World-Wide Interbank (SWIFT)
- Sovereign Risk
- Speculation
- Spot market
- Spread
- Stagflation
- Sterling
- Stochastic oscillator
- Stop price
- Swap
- Swiss National Bank (SNB)
- Swissy
- Systematic risk
Part of the Trading glossary. Definitions are general explanations, not investment advice.