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Stop order explained.

An order that changes into a market order after its specified trigger is reached. Its eventual execution can differ from the stop price, especially in fast or gapping markets.

Risk & orders

Stop order

An order that changes into a market order after its specified trigger is reached. Its eventual execution can differ from the stop price, especially in fast or gapping markets.

Example: A trigger at $45 does not require the next execution to occur at $45.

Watch for: Treating a stop as a guaranteed maximum loss.

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