What it means
A stop order is often used for exits, breakouts, or protective stops once price reaches the stop level.
What to watch
Once triggered, a stop market order can fill worse than expected during fast movement.
Glossary
Stop Order
An order that activates when price reaches a chosen trigger level.
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Glossary
Market Order
An order that prioritizes immediate execution over a guaranteed price.
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Stop-Limit Order
An order that activates at a stop price but then behaves like a limit order.
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Trailing Stop
A stop level that moves in the direction of a profitable trade to help protect open gains.
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