Stop: Buy Stop Vs Sell

A is an instruction to buy a security once it reaches a price above the current market level, while a sell stop order is an instruction to sell once the price drops below the current market level.

: Entering a trade once a stock breaks above a resistance level, betting that the upward momentum will continue. buy stop vs sell stop

Stock & ETF Orders: Limit, Market, Stop, & Stop-Limit | Vanguard A is an instruction to buy a security

: Becomes a market order when the price rises to or through the specified stop price. Placement : Must be set above the current market price. Common Uses : Placement : Must be set above the current market price

Both are types of "stop orders" that remain dormant until their trigger price is hit, at which point they become standard market orders to be executed at the next available price. Buy Stop Orders