Stop order

The user specifies a stop trigger price for the position. A stop order is not guaranteed a specific execution price.

Sell-side: A stop order is always placed below the current market price and is used to limit a loss or protect a profit on a long position.

Buy-side: A stop order is always placed above the current market price. It is used to limit a loss or help protect a profit on a short position.

Example

Sell-side: If you submit stop order at $26, a sell market order will be submitted when the stock price drops to $26.

Buy-side: If you submit a stop order at $33, a buy market order will be submitted when the stock price rises to $33.