sell stop order

Sell Stop Order

An order to a broker to sell a security if its price falls below a certain level. A sell stop order exists to stop the losses, should a security's price fall. That is, it protects against further losses. See also: Buy stop order, stop-loss order.

sell stop order

A customer order to a broker to sell a security if it sells at or below a stipulated stop price. This type of stop order can be used to protect an existing profit or to limit the potential loss on an owned security. Compare buy stop order.