Stop order

Stop order
Stop order Stop order (Finance) An order in a financial market that aims to limit losses by fixing a figure at which purchases shall be sold or sales bought in, as where stock is bought at 100 and the broker is directed to sell if the market price drops to 98.

Note: For a simple stop order, when the specified price has been reached by a traded security, the order becomes a market order to buy or sell at the market price. Thus in the given example, the stock bought at 100 might in fact be sold at 97 if the market is dropping rapidly. A {stop-limit order} is allowed by some exchanges and traders, in which case, when the specified price has been reached by a traded security, the order becomes a {limit order} to buy or sell, with the possibility that the ordered transaction may not take place. [Webster 1913 Suppl. +PJC]


The Collaborative International Dictionary of English. 2000.

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Look at other dictionaries:

  • stop order — see order 4b Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. stop order …   Law dictionary

  • stop order — n. an order to a broker to buy or sell a certain stock when a specified price is reached …   English World dictionary

  • stop order — An order to buy or sell when the market reaches a specified point. A stop order to buy becomes a market order when the futures contract trades (or is bid) at or above the stop price. A stop order to sell becomes a market order when the futures… …   Financial and business terms

  • Stop Order — An order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor s loss or locking in his or her profit. Once the price… …   Investment dictionary

  • Stop order — An order to buy or sell at the market when a definite price is reached, either above (on a buy) or below (on a sell) the price that prevailed when the order was given. The New York Times Financial Glossary * * * stop order stop order also stop… …   Financial and business terms

  • stop order — noun an order to a broker to sell (buy) when the price of a security falls (rises) to a designated level • Syn: ↑stop loss order • Hypernyms: ↑order, ↑purchase order * * * noun : an order to a broker to buy or sell at the m …   Useful english dictionary

  • stop order — stop′ or der n. bus an order to a broker to buy or sell a security if the market price goes above or below a designated level …   From formal English to slang

  • stop order — An order by a public service commission which requires a carrier to stop for passengers or freight at a certain point on route or line. A direction given by a customer to his broker to the effect that if a designated stock or commodity owned by… …   Ballentine's law dictionary

  • stop order — an order from a customer to a broker to sell a security if the market price drops below a designated level. Also called stop limit order, stop loss order. Cf. limit order, market order. [1870 75] * * * …   Universalium

  • stop order — /ˈstɒp ɔdə/ (say stop awduh) noun (in banking) an order, as by the drawer of a cheque, etc., not to make payment …  

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