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Orders

Stop order — definition & meaning

An order that triggers a market order once a set price is reached.

A stop order becomes a market order once the price hits your chosen trigger level. It is used both to enter breakouts and to exit losing trades.

A buy stop sits above the current price; a sell stop sits below. Because it turns into a market order when triggered, a stop order can be filled with slippage in fast markets.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Stop-loss
A preset order that closes a losing trade to cap your loss.
Stop-limit order
A stop that triggers a limit order rather than a market order.
Market order
An order to buy or sell immediately at the best available price.
Breakout
When price moves decisively beyond a support or resistance level.
Limit order
An order to trade only at a specified price or better.
Take-profit
A preset order that closes a winning trade at your target price.

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