Definition of Stop order

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TeachMeFinance.com - explain Stop order




historic definition...

Stop order -- When an order is given to a broker for the purchase of a stock, for instance, at 100, with instructions to stup it at 98 it means that the stock is to be sold if it declines to 98. On the other hand, if a stock is sold short at 100 with instructions to stop it at 102 it is to be bought back if it advances to 102. A stop order is employed principally to limit loss in speculation ; in such a case it is specifically designated as a stop-loss order.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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