Buy Stop Order

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DEFINITION

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

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 a certain price. ...
  2. Conditional Order

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  3. Buy Stops Above

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  4. Scale In

    The process of purchasing shares as the price decreases. To scale in (or scaling ...
  5. Market Order

    An order that an investor makes through a broker or brokerage service to buy ...
  6. Market If Touched - MIT

    A conditional order that becomes a market order when a security reaches a specified ...
  7. Protective Stop

    A strategy designed to protect existing gains or thwart further losses by means ...
  8. Stopped Out

    The execution of a stop-loss order. Stopped out refers to when an investor predetermines ...
  9. Stop Order

    An order to buy or sell a security when its price surpasses a particular point, ...
  10. Stop-Limit Order

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