Glossary

What is Stop order (stop-market)

An order that sleeps until a trigger price and then fills at market. That is how a stop-loss usually works: the exit is guaranteed, the price is not.

How it works

In a fast move the fill can land below the trigger.

Example

A 62,590 stop on a long. In a sharp spike the trigger fired and the market sell filled at 62,575 — a 1.04R loss instead of 1R.

Common mistake

Assuming a stop-market fills exactly at the trigger: around news the difference can be noticeable.

Read next

Frequently asked questions

Where can I learn Stop order (stop-market) step by step?
In the Trading OS Academy: “Stop and take-profit are orders, not intentions”.
What is Stop order (stop-market) related to?
Stop-loss; Stop-limit order; Slippage; Market order.

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