What is the definition of a stop order?
- Posted on November 21, 2019
- Financial Terms
- By admin admin
Investinport explains Stop order as a way for an investor to put a stop to a pending transaction or exit a position by setting a certain price level in place.
By definition, a stop is a type of order relating to the trading of an asset. It is placed with a broker and indicates a price level at which the owner of the asset wishes to exit their position. This will limit their losses to a certain amount, but also means if the market dips slightly below their stop level and then rebounds they will still exit the position.
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