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Stop Order

Order triggered at specified price level

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What is Stop Order?

Stop Order An order that becomes a market order once a specified trigger price is reached. Used to limit losses or protect profits. Stop orders on options can be risky due to wide bid-ask spreads and fast price moves, potentially resulting in poor fills.

Complete definition

An order that becomes a market order once a specified trigger price is reached. Used to limit losses or protect profits. Stop orders on options can be risky due to wide bid-ask spreads and fast price moves, potentially resulting in poor fills.

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