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 ...
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 ...
.
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 ...
as opposed to a market order.
External links
* http://www.investorwords.com/4761/stop_price.html
{{Stock market, April 2007
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