Orders & Execution

Stop Order

Also called: stop-market, stop-limit

An order that stays dormant until price hits a trigger, then becomes a market or limit order — used for protective stops and breakout entries.

A stop order activates only when price reaches your stop price. A stop-market then fills immediately at the best available price (guaranteed execution, uncertain price); a stop-limit becomes a limit order (guaranteed price, possible non-fill). Sell-stops sit below price to cap losses or exit; buy-stops sit above to enter on a breakout.

Stop-markets are the safer choice for protective exits because they ensure you're out, even if the fill slips; stop-limits risk being skipped past in a fast gap. The trigger is the level that proves your trade wrong — see stop-loss.

On StockSetups

The structural stop on every StockSetups setup is exactly what a protective sell-stop order is for: place it at the level the scan drew below support, while a buy-stop above resistance can trigger a breakout entry automatically.

Related terms

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