Stop price

A stop price is the price in stop order that triggers creation of market order.

In the case of a Sell on Stop order, when the market reaches or falls below the Stop Price a market sell order will be triggered. For Buy on Stop orders, the stop price triggers the creation of a market buy order when the market price of the stock rises to or above the stop price.

In addition if a Stop Limit is also indicated on stop order, the resultant order will be a corresponding limit order as opposed to a market order.

External links

http://www.investorwords.com/4761/stop_price.html

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This article is issued from Wikipedia - version of the 6/17/2010. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.