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What is a stop order?

What is a stop order?

A stop order is a type of pending order that opens a trade when the price reaches a specific level in the direction of the trend.

  • Buy Stop: placed above the current price
  • Sell Stop: placed below the current price

The trade is executed automatically once the market reaches your set price.

Stop orders are commonly used when traders expect the price to continue moving in the same direction (breakouts).

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