: Becomes a market order when the price rises to or through the specified stop price. Placement : Must be set above the current market price. Common Uses :
A is an instruction to buy a security once it reaches a price above the current market level, while a sell stop order is an instruction to sell once the price drops below the current market level. buy stop vs sell stop
: Entering a trade once a stock breaks above a resistance level, betting that the upward momentum will continue. : Becomes a market order when the price
Stock & ETF Orders: Limit, Market, Stop, & Stop-Limit | Vanguard : Entering a trade once a stock breaks
: Limiting losses on a short position. If you bet a stock will fall but it starts rising instead, a buy stop automatically buys the shares back to "stop" your losses. Sell Stop Orders