What Is a Stop Order?

A Stop Order activates and becomes a Market Order once the market price reaches your specified stop price, helping you protect a position or lock in gains without watching the market constantly.

Good to know:

• Before the stop price is reached, the order sits inactive; once triggered, it executes as a Market Order.
• The final execution price can differ from your stop price, especially in a volatile market.

Related questions:

Q: Is a Stop Order guaranteed to execute at my stop price?
No — once triggered, it executes as a Market Order at the best available price.

Q: What's the difference between a Stop Order and a Stop-Limit Order?
A Stop Order becomes a Market Order once triggered; a Stop-Limit Order becomes a Limit Order.