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Webster's New World Finance and Investment Dictionary » buy-stop order
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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