Sell Stop Order Definition

A sell stop order is an instruction to sell an asset once its price falls to a specified level below the current market price.

What is a Sell Stop Order?

Sell stop orders are often used to limit losses on a long position or to enter a short position on a breakdown.

Once triggered, the order is typically executed as a market order at the next available price.

A trader places a sell stop at $45 for a stock trading at $50, so the order triggers if price falls to $45.

Scalping is a short-term trading strategy that aims to profit from very small price movements, often within seconds or minutes.

A sector is a group of companies operating in the same segment of the economy, such as technology, energy, or healthcare.

Securities are tradable financial instruments representing ownership, a creditor relationship, or rights to ownership, such as stocks and bonds.