A Stop Order becomes a market order once price reaches a trigger level. It is used to cap losses or to enter on a breakout.
How traders use it
- A stop-loss caps the loss on an open position.
- A buy-stop can enter on a breakout above resistance.
- It converts to a market order, so slippage is possible.
See it in dtcharts
Practice every order type risk-free in the dtcharts terminal with paper trading.