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. Market Order

    An order that an investor makes through a broker or brokerage ...
  3. Market If Touched - MIT

    A conditional order that becomes a market order when a security ...
  4. Protective Stop

    A strategy designed to protect existing gains or thwart further ...
  5. Stopped Out

    The execution of a stop-loss order. Stopped out refers to when ...
  6. Stop Order

    An order to buy or sell a security when its price surpasses a ...
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. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center