Chapter 04 · Section 4.1

Stop Orders

1. 1Synonymous to "stop order"→
2. 2Stop Orders -Buy→
3. 3Stop Orders- Call→
4. 4When a stop order is executed?→
5. 5Stop Orders- Market Price→
6. 6Stop Orders- Price Fluctuations→
7. 7Stop Orders- Usage→

A stop order is an order executed when the market reaches or goes through the price specified in the order.

A sell-stop order is always placed below current price levels to exit from losing positions, whereas a buy-stop order is placed above current price levels to enter into positions when the market reaches a specified level.