Stop Order

{
  "id": "MLC-T-FIN-000371",
  "term": "Stop Order",
  "field": "Finance and investing",
  "definition": "A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the specified price is reached, your stop order becomes a market order. The advantage of a stop order is you don't have to monitor how a stock is performing on a daily basis. The disadvantage is that a stop price purchase or sale could be activated by a short-term fluctuation in a stock's price. In addition, the price at which your trade is executed may differ from the stop price, especially in a fast-moving market where stock prices can change rapidly.",
  "references": [
    "SEC Investor.gov Glossary"
  ],
  "url": "https://mlchart.com/terminology/finance/stop-order/"
}