JoymistaWhat Is a Buy Stop and Sell Stop Order?
A stop order is a pending order that triggers once price moves past a level you set: a buy stop above the current price, a sell stop below it.
Explained
Stop orders are often used to enter on a breakout, such as buying if price breaks resistance. Once triggered it becomes a market order, so in fast moves it may fill slightly worse than the level.
Example
Example with made-up numbersPrice is 98 with resistance at 100, so you place a buy stop at 100.5. If price rises past 100.5, the buy opens.
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Open in JoymistaEducational content, not investment advice.