Username: Peter Rating: Asked to: Chaoxiang Lee Date Created: 08 Nov 2018 |
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Category | 28 |
Tag | Financial |
Question | What is a 'Stop Order'? |
Hello Peter, A stop order is an order to buy or sell a security when its price moves past a particular point, ensuring a higher probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in a profit. Once the price crosses the predefined entry/exit point, the stop order becomes a market order. Also referred to as a "stop" or "stop-loss order." |
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