Stop Orders
Stop orders are used for three purposes: to minimize a loss on a long or short position; to protect a profit on an existing long or short position; to initiate a new long or short position. Buy stop orders are placed above the market price and sell stop orders are placed below the market price. Once the stop price is changed, the order is handled like a market order and is filled at the best possible price.If the order price is higher than the current market price when buying, then it is a buy stop. If the order price is lower than the current market price when sellilng, it is a sell stop.
