Stop Order

Stop Order – A pending order to buy or sell once the market reaches a certain price (the stop price). Unlike a limit, a stop order “stops” an order from executing until the trigger is hit. For example, a buy stop is placed above the current price: it activates when price rises to that level. cTrader (and brokers) then execute a market order when the stop price is hit. Babypips explains: “A stop order ‘stops’ an order from executing until price reaches a stop price”. Traders use stop orders to enter on momentum or to set stop-losses.

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