Terms Beginning With 'b'

Buy Stop Order

  • January 15, 2020
  • Team Kalkine

It is an order which directs a broker to buy a security when it has a strike price which is higher than the current spot price. The buy stop order has a range of functions. It presumes that the price of the share, that reaches a certain level, will continue to grow in future. It can be used to protect the unlimited losses for an uncovered short position.

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