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Stop Market




This type of stop loss order is known by various names, such as "stop," "stop loss," and "stop market." This is an order that says once the stock's market price touches or goes below the stop market order price, the stop market order is activated and filled as soon as there is a willing buyer (market), regardless of price.


Additional Comments:

On the surface, this may sound very disconcerting. It is quite the contrary.

If a stock is going to trigger your stop loss price, even if it gaps below your stop loss price, you will want to get out of the stock as quickly as possible.

If a stock plummets below your stop loss setting, it is almost always because of some kind of bad news. And almost always, not all the bad news comes out at once. More bad news is likely to follow. Better to get out at any price than to hope the bad news will go away and the stock will rebound. Hope is a terrible investment strategy.

Related Terms:

Stop Limit
This is an order that says once the stock's market price touches or goes below the ...

Stop Order
A stop order is an order to buy or sell a stock once the price of ...

Trailing Stop
Trailing stops are designed to follow the market price of a stock by a percentage amount ...





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