What is a stop order?

Article author
Capital.com Customer Support
  • Created

A stop market order is an instruction to execute a trade when a price level (the stop market level) has reached the price that is equal to or worse than the current best price.
If you place a stop order when the market is closed to execute the order at a specific beneficial price and there is a gap at the market opening, the order will be executed at either the same price you have specified or the worse price. For example, if you place a stop order to buy at 10$ and the market opens at 12$, your position will be opened at 12$.

Was this article helpful?

5 out of 5 found this helpful

Comments

0 comments

Please sign in to leave a comment.