What Is A Buy Stop Order at Buying

What Is A Buy Stop Order. A buy stop order represents a market order to buy shares at the next available ask price, if and when the last trade price increases to, or up through, the stop price. A stop order is an order to buy or sell a security when its price moves past a particular point, ensuring a higher probability of achieving a.

You place a “sell stop” order to sell when a specified price is reached. A buy stop order represents a market order to buy shares at the next available ask price, if and when the last trade price increases to, or up through, the stop price. If the stock reaches the stop price, the order becomes a market order and is filled at the next available market price.

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What is a stop order, and how is it used? When the stop price is reached, a stop order becomes a market order. When the market trades up to or through the stop price, a market order is sent. If the stock reaches the stop price, the order becomes a market order and is filled at the next available market price.