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Subjects>Business>Finance

Can you explain how a stop order works in trading?

Maiya Legros ∙

Lvl 10

∙ 2mo ago

Updated: 2/15/2025

A stop order is a type of trade order that is set at a specific price point. When the market reaches that price point, the stop order is triggered and the trade is executed. This is used to limit losses or lock in profits for investors.

AnswerBot

∙ 2mo ago

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Q: Can you explain how a stop order works in trading?

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What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.

What is the difference between a limit order and a stop order in trading?

A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.

What are the different kinds of cfd trading platforms?

"CFDs can be traded on any platform that allows for stock trading, but specialized platforms do exist. The best allow for limit, stop, and/or market orders after hours, stop entry order support, CFD-specific charts and reports, and CFD-specific accounting."

What time does trading stop on wall street?

4:00 pm eastern time.

What is the difference between a stop order and a stop limit order on the thinkorswim platform?

A stop order becomes a market order when the stock reaches a certain price, while a stop limit order becomes a limit order when the stock hits a specified price.

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Related Questions

What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.

What is the difference between a limit order and a stop order in trading?

A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.

What is a stop loss in stock trading?

From investopedia: An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a position in a security. Although most investors associate a stop-loss order only with a long position, it can also be used for a short position, in which case the security would be bought if it trades above a defined price. A stop-loss order takes the emotion out of trading decisions and can be especially handy when one is on vacation or cannot watch his/her position. However, execution is not guaranteed, particularly in situations where trading in the stock is halted or gaps down (or up) in price. Also known as a "stop order" or "stop-market order."

When did the Europeans stop trading with Asia?

it was in 1111.

What are the different kinds of cfd trading platforms?

"CFDs can be traded on any platform that allows for stock trading, but specialized platforms do exist. The best allow for limit, stop, and/or market orders after hours, stop entry order support, CFD-specific charts and reports, and CFD-specific accounting."

What did Europe stop trading in the early 1800s?

Slaves

What colony did not agree to stop trading with England?

Georgia

What caused the colonists to stop trading with Britain?

taxes were to high

Why should Canada stop trading with china?

To be self sufficent

How did slave trading stop?

Abraham linkin Stoped slavery.

How do you stop a child support order before it starts?

Assuming that "you" are one of the parties in the matter, you appear in court on the appointed date and explain to the judge why the court should not enter an order for support.

When did trading stop?

Enron was filed for bankruptcy on December 2nd 2001

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