SellStop Order is a type of pending market order, which instructs your broker to buy or sell an asset at a predetermined price that differs from the current market price.
SellStop Order is used when you want to sell an instrument at a price lower than the current market rate.
The type of SellStop Order is used when you expect the value of the asset to fall further from the level you have chosen.
When the price reaches the level where the SellStop Order is set, the broker automatically opens a sell trade without requiring trader confirmation. Before this point, the order can be canceled.
FAQ
What is a SellStop order?
A SellStop order is a type of pending order that instructs a broker to sell an asset at a specified price below the current market rate.
When is a SellStop order used?
A SellStop order is used when an investor expects the price of an asset to drop further and wants to sell it at a predetermined level.
Can a SellStop order be canceled?
Yes, a SellStop order can be canceled before the price reaches the specified level.
