A Stop Order is an order to buy or sell a stock once it meets the stop price.
When the stock hits your stop price, the Stop Order becomes a Market Order. It then executes the order at the best price available.
Investors often place stop orders to help reduce potential losses, in case the stock moves in the wrong direction.
There is the risk that short-term fluctuations in a stock’s price can trigger a stop order resulting in a market order being executed.
Stop 'Buy' Orders
Here's how to set one:
1. Select an instrument
2. Choose the number of shares to Buy
3. Set a Stop Price which you're willing to pay for a share.
NOTE: The order's target price should be above the current market price. Otherwise, it will automatically be converted into a Market Order.
Stop 'Sell' Orders
Here's how to set one:
1. Select the instrument you'd like to sell shares of.
2. Set the number of shares to Sell.
3. Set a Stop Price which you're willing to Sell your shares for (to prevent you from bigger losses).
NOTE: The order's target price should be below the current market price. Otherwise, it will automatically be converted into a Market Order.
* A Stop Order will remain pending and the funds needed for its execution - blocked, until its target price is reached. It cannot be modified unless cancelled and replaced by a new order of the same or a different type.