: Entering a trade once a stock breaks above a resistance level, betting that the upward momentum will continue.
Both are types of "stop orders" that remain dormant until their trigger price is hit, at which point they become standard market orders to be executed at the next available price. Buy Stop Orders buy stop vs sell stop
: Limiting losses on a short position. If you bet a stock will fall but it starts rising instead, a buy stop automatically buys the shares back to "stop" your losses. Sell Stop Orders : Entering a trade once a stock breaks
Stock & ETF Orders: Limit, Market, Stop, & Stop-Limit | Vanguard If you bet a stock will fall but
: Becomes a market order when the price rises to or through the specified stop price. Placement : Must be set above the current market price. Common Uses :
A is an instruction to buy a security once it reaches a price above the current market level, while a sell stop order is an instruction to sell once the price drops below the current market level.