A stop order is simply a market order that is automatically triggered at a specific market price.

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A stop order is a type of order that is triggered when the market price of a particular security reaches a predetermined level. Once this level is reached, the stop order is automatically transformed into a market order and executed at the best available price. Essentially, a stop order is a way of ensuring that an investor does not suffer significant losses if the market moves against them.

A Stop Order Is Simply a Market Order That Is