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Buy stop order

A buy stop order (buy stop market) waits above the current price and, when price trades at its trigger, becomes a market buy.

Price 100, buy stop at 103: nothing happens until price trades at 103, then it buys at 103 or worse. Used as the stop loss of a short, or to enter a long on a breakout without chasing the price. The opposite is a sell stop order.

Learn more: types of orders.