A stop order is similar to a limit order, except that the order turns into a market order once the stop price is hit.

Name: A stop order is similar to a limit order, except that the order turns into a market order once the stop price is hit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A stop order is placed at a specific price like a limit order, but when the price is reached the stop turns into a market order that will be executed at close to the stop price but not necessarily at the exact price specified.

A Stop Order Is Similar to a Limit Order, Except