Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• STOP
  
  Is an order than becomes market executable when a stated level is hit or crossed. Sell stops become market activated when the market declines to the stated stop price or lower. Then the order requires the instrument to be sold at prevailing market prices. Buy stops become market activated when the market advances to the stated stop price or higher. Then this order requires the instrument to be purchased at the prevailing market prices. A variation of the Limit Order is the Stop Limit Order.
  
  Back