Stop

A buy stop is an order to buy at a specific price higher than the current market price, and a sell stop is a stop to sell at a specific price below the current market price.

Traders often refer to stop-loss orders, which are stops that are placed below the market when the trader is long, and above the market when the trader is short.

These orders are triggered when the market price reaches them to prevent further losses in the trader's position.

Stop orders are not always executed at exactly the price specified, as the market may be too volatile.

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