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What is a Stop Order?

Stop Order

A stop order becomes a market order once a specified stop price is reached.

Stop orders are commonly used to:

  • Limit potential losses
  • Enter positions after price movement
  • The order becomes a limit order rather than a market order

      Risk Disclosure
      Stop orders do not guarantee execution at the stop price. During periods of volatility or price gaps, execution may occur at a materially different price, a phenomenon known as slippage.

       

      Stop-Limit Order

      A stop-limit order combines features of a stop order and a limit order.

      Once the stop price is reached:

        This provides price control but increases the risk that the order may not execute at all.

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