Stop order. When an order is given to a broker for the purchase of a stock, for instance, at 100,
with instructions to stop it at 98 it means that the stock is to be sold if it declines to 98. On the
other hand, if a stock is sold short at 100 with instructions to stop it at 102 it is to be bought back if
it advances to 102. A stop order is employed principally to limit loss in speculation; in such a case
it is specifically designated as a stop-loss order.
with instructions to stop it at 98 it means that the stock is to be sold if it declines to 98. On the
other hand, if a stock is sold short at 100 with instructions to stop it at 102 it is to be bought back if
it advances to 102. A stop order is employed principally to limit loss in speculation; in such a case
it is specifically designated as a stop-loss order.
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