Stop order

ParamountDax stop orders;

A sell stop order is an instruction to close out a trade at a price worse than the current market level and, as the name suggests, is used to help minimize losses

A buy stop order is an instruction to open a trade at a price higher than the current market level.

A stop order, once triggered, closes the trade at the best price.

There is a risk therefore that the closing price could differ from the order level if there’s a gap in market prices execute a trade at a specified price (the stop price).

Trader may specify the desirable stop price for this order, when the stop price is reached, a stop order becomes a market order.