What is a Buy Stop Order?
” Buy stop orders are an example of a means of entering a purchase request for a security that comes with the stipulation that the request be held until the current market price for the security is equal to the stop price for the asset. Buy orders of this type are usually employed when market trends indicate that the market price for some sort of security is about to enter into a period of increasing in value. Essentially, a buy stop order is a strategy that allows an investor to secure an asset when and if the market price begins to rise, without the need to constantly monitor the activity of the security. . As part of the process of entering a buy stop order, an investor will often go over the proposed market order with his or her broker.
Buy stop orders are an example of a means of entering a purchase request for a security that comes with the stipulation that the request be held until the current market price for the security is equal to the stop price for the asset. Buy orders of this type are usually employed when market trends indicate that the market price for some sort of security is about to enter into a period of increasing in value. Essentially, a buy stop order is a strategy that allows an investor to secure an asset when and if the market price begins to rise, without the need to constantly monitor the activity of the security. As part of the process of entering a buy stop order, an investor will often go over the proposed market order with his or her broker. As part of the investigation into the feasibility of creating a buy order of this type, the investor and the broker will look at the past performance of the security in question. This detail will be evaluated in light of the current conditions that prov
