Buy Stop Order

AAA

DEFINITION of 'Buy Stop Order'

An order to buy a security which is entered at a price above the current offering price. It is triggered when the market price touches or goes through the buy stop price.

INVESTOPEDIA EXPLAINS 'Buy Stop Order'

People using a buy stop hope to gain if momentum gains on a particular stock. If the price exceeds the price you have set, it will automatically trigger a market order.

RELATED TERMS
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop ...
  3. Conditional Order

    A type of order that will be submitted or canceled if set criteria ...
  4. Buy Stops Above

    A recommendation to buy a specific security when a the security's ...
  5. Scale In

    The process of purchasing shares as the price decreases. To scale ...
  6. Market Order

    An order that an investor makes through a broker or brokerage ...
Related Articles
  1. How To Place Orders With A Forex Broker
    Forex Education

    How To Place Orders With A Forex Broker

  2. The Basics Of Trading A Stock
    Active Trading Fundamentals

    The Basics Of Trading A Stock

  3. What does
    Active Trading Fundamentals

    What does "gather in the stops" mean?

  4. Protect Yourself From Market Loss
    Options & Futures

    Protect Yourself From Market Loss

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center