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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.
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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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Learn how to set each type of stop and limit when trading currencies.
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It's a simple but powerful tool to help you implement your stock-investment strategy. Find out how.
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Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
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