buy-stop order

A buy order that won’t be executed until the market price rises to the price level listed by the stop order. At that point it will become a market order to buy the security at the best price possible. For instance, a buy-stop order may be entered for a S&P 500 futures contract calling for it to be bought at 850. If the current price is 835, the order won’t be executed until 850 is reached. A technical trader might use this type of order because he or she isn’t willing to purchase the contract unless it reaches a certain point. Also called suspended market order.