buy-stop order

buy-stop order definition - finance
A buy order that wonÂ’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 wonÂ’t be executed until 850 is reached. A technical trader might use this type of order because he or she isnÂ’t willing to purchase the contract unless it reaches a certain point. Also called suspended market order.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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