Buy Stop Order

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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.

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