Sell Stop Order definition

Sell Stop Order is order to sell security at lower than current price if/after that lower price is reached.

For example, say ABCD is trading at 20. Sell Stop Order to sell 1000 shares of ABCD at 18 will only be executed if/after ABCD price reaches 18. At that point the order becomes "Sell 1000 shares of ABCD at market price".

Investor Dictionary

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z