Stop Order
An order that becomes a market order once the stock reaches a specified trigger price — used primarily for stop-losses.
Read the full guide: Stop-Loss Strategies: 7 Methods to Protect Your Trading Capital
13 min read — in-depth strategies, examples, and more
Explained Simply
A stop order (also called a "stop-market order") sits dormant until the stock hits the stop price, then converts to a market order and executes at the next available price. Stop sell orders are placed below the current price (for stop-losses). Stop buy orders are placed above the current price (for breakout entries). The risk is that in fast-moving markets, the actual execution price can be significantly worse than the stop price (slippage). This gap risk is why some traders prefer stop-limit orders.
How Tradewink Uses Stop Order
Stop orders are used for stop-loss management in the autonomous trading system. When a position is opened, a stop order is immediately placed at the calculated stop-loss level. The DynamicExitEngine may cancel and replace stop orders as trailing stops are adjusted. The system monitors stop order fills and reconciles actual fill prices with expected prices for execution quality tracking.
Related Terms
Learn More
See Stop Order in action
Tradewink uses stop order as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.