How does Stop Order work

Stop order is a particular order, conditioned by "reaching/surpassing" a trigger price, used to open a new long or short position.


It is managed the same way through different markets, same as the stop loss description. On U.S. Stocks Echanges, where Directa does not allow the opening of short positions, the stop order is used only to open a new long position.

E.g.: if Ask Price on Cisco System (CSCO) rises to 18 $, buy the specified quantity at limit price equal to or higher than 18 $, or At Market.