Stop Order
An order to buy or sell once a pre-defined price is reached; at that point it becomes a market order, executed at the best available price. Stop orders can be affected by gaps and slippage, so they will not necessarily be filled at the stop level if the market does not trade at that price.
Related terms
Stop-Loss Order
An order to buy or sell once a currency or security reaches a specified price, designed to limit a trader’s loss on a position. The trade is processed only if the chosen rate is reached, capping downside without the need to monitor the market constantly.
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An order placed to buy above the current price or sell below it, useful if you believe the market is heading in one direction and have a target entry price.
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The difference between the expected price of a trade and the price at which it is executed. It can occur during periods of higher volatility.
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Aggressive
A description of traders and/or price action acting with conviction.
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The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
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An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
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A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
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Traders who expect prices to rise and who may be holding long positions.
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