Stop order


A stop order can be placed on orders for all time durations except good till extended market hours (GTEM). You set your buy-stop order price above the current market price and your sell-stop order below the current market price. When your stop order price is reached, your order becomes a market order for processing.

When you place a buy order with a stop, you’re setting the maximum price (stop), above the current market price you’re willing to pay for your order for the duration you set. When the market price is at your stop price, your order becomes a market order and it will be processed at the available market price.

When you place a sell order with a stop, you’re setting the minimum price below the current market price that you’re willing to accept when you sell for the duration you set. When the market price is at your stop price, your order becomes a market order and it will be processed at the market price.

Example of a stop order: You place a buy order (bid) for 200 shares of ABC Company at a stop price of $125.00 per share. Your order will be processed (executed) when the shares are trading at $125.00 per share in any duration code that you set. When the stop condition is met, the order becomes a market order and it will be processed at the market price which could be higher or lower than your maximum or minimum prices. The price difference is called slippage.