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stop order definition - finance
An order to trade that is placed with instructions to execute the trade only if a certain price level is reached. For a sell stop order, the trade isnÂ’t done unless the commodity or stock reaches or falls below a certain price level. A buy stop order is triggered if the price reaches or exceeds a certain level. These orders may be in effect for one day, another specified time frame, or in effect until cancelled.

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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