A stop order is an order to buy or sell a security when its price increases past a particular point in order to limit losses or lock profits.
 | | Term of the Day | Words to Know | | |  | | Stop Order | A stop order is an order to buy or sell a security when its price moves past a particular point, ensuring a higher probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in a profit. Once the price crosses the predefined entry/exit point, the stop order becomes a market order.
Also referred to as a "stop" a stop order to sell that is linked to a limit order is known as a "stop-loss order." | | Read More » | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Market Order | | A market order is a request made by an investor through a broker or brokerage service to buy or sell an investment immediately at the best available current price. | | Read More » | | | Buy Stop Order | | A buy stop order directs to an order in which a market buy order is placed on a security once it hits a pre-determined strike price. | | Read More » | | | Fill | | A fill is the action of completing or satisfying an order for a security or commodity. It is the basic act in transacting stocks, bonds or any other type of security. | | Read More » | | | Illiquid | | Illiquid is the state of a security or other asset that cannot quickly and easily be sold or exchanged for cash without a substantial loss in value. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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