Forex glossary
Stop order
A stop order triggers a buy or sell request when a specified level is reached. Standard FX places a buy stop above ask and a sell stop below bid. Triggering does not confirm a lasting breakout; fill price can differ from the trigger, and stop-limit is a separate order type.
Illustrative example
How does it work in practice?
Suppose hypothetical EUR/USD ask is 1.1000 and a buy stop is set at 1.1020 USD per EUR. After a gap the first available price is 1.1030; filling there differs from the trigger.
A case to work through
Triggering without a lasting breakout
Model: buy stop triggers at ask 1.1020, fills at 1.1021, and ask later falls to 1.1010 USD/EUR.
- The order condition was met, not a condition establishing a future trend.
- A reversal does not automatically undo an already confirmed trade.
What follows? Assess the position and exit plan after execution.
Example boundary: Product rules determine activation; an ordinary stop can fill worse than its threshold.
A useful distinction
Stop order / Limit order
A limit constrains price; an ordinary stop activates a request, while stop-limit combines two conditions.
Check your understanding
Separate the trigger level from later price behavior.
Show the answer and explanation
Its stated activation condition was reached
It establishes neither future direction nor exact fill price.
Orders, prices and execution quality
Step 3 / 11 · 0 / 11 reviewed
View the full sequence →Progress is saved only in this browser.
Read the fuller explanation
Related terms
Sources and documentation
- MetaTrader 5: basic trading principles
Orders, deals and positions; FOK, IOC and partial-filling policies.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.