Glossary · S
What is Stop order?
An order that becomes active when a trigger price is reached. A stop-market order then executes as a market order and can suffer slippage. Stop orders are not visible in the book until triggered.
In context
A stop run is a particular kind of sweep. Above an obvious swing high (a recent peak that everyone can see), and below an obvious swing low, the previous day's high or low, or the overnight high or low, stop orders tend to accumulate. Above a high, these are the protective buy stops of traders who are short, plus breakout buy orders from traders who want to join a move up. When price reaches that zone, the stops become market orders and create new aggressors in one burst. The result is a jump in tape speed and a short, sharp price spike.
Learn it in depth
Related terms
Every term in context, with real gold examples: the free 301-page eBook.
Get the free PDFRead the academy