A stop price is the price in a
stop order
An order is an instruction to buy or sell on a trading venue such as a stock market, bond market, commodity market, financial derivative market or cryptocurrency exchange. These instructions can be simple or complicated, and can be sent to either a ...
that triggers the creation of a
market order
An order is an instruction to buy or sell on a trading venue such as a stock market, bond market, commodity market, financial derivative market or cryptocurrency exchange. These instructions can be simple or complicated, and can be sent to either a ...
.
In the case of a
Sell on Stop order, a market sell order is triggered when the market price reaches or falls below the stop price. For Buy on Stop orders, a market buy order is triggered when the market price of the stock rises to or above the stop price.
In addition, if a
Stop Limit is also indicated in the stop order, the resultant order will be a corresponding
limit order
An order is an instruction to buy or sell on a trading venue such as a stock market, bond market, commodity market, financial derivative market or cryptocurrency exchange. These instructions can be simple or complicated, and can be sent to either a ...
as opposed to a market order.
External links
* http://www.investorwords.com/4761/stop_price.html
{{Stock market, April 2007
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