What is a Stop Order on US Stocks?

This order allows you to execute a market buy/sell order once the market price reaches a certain price point, known as the stop price. However, similar to a market order, this order type does not guarantee an execution price as the order will be executed at whatever price is available in the market after it passes your stop price.

Example:

The stock is currently at $90.00. You believe that if the price goes up and hits $110.00, the uptrend will continue. So you place a Stop Buy Order with a stop price of $110.00. When the price hits $110.00, your order becomes a Market Order, and will be bought at the current market price (which may be $110.10 or $110.50, depending on market conditions). The strike price is not guaranteed to be exactly $110.00.