A
stop price is the price in
stop order that triggers the creation of a
market order.
In the case of a Sell on Stop order, when the market reaches or falls below the Stop Price a market sell order will be triggered. For Buy on
Stop orders, the stop price triggers the creation of a market buy order when the market price of the stock rises to or above the stop price.
In addition if a Stop Limit is also indicated on stop order, the resultant order will be a corresponding
limit order as opposed to a
market order.
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