What is Buy Stop? - Definition & Explanation

Definition

A pending order to buy at a price above the current market price.

Buy Stop Explained

A buy stop order instructs your broker to buy at a specified price higher than the current market price. It is commonly used for breakout trading strategies - entering only if price confirms upward momentum.

Related Terms

Buy Limit

A pending order to buy at a price below the current market price.

Buy Stop - Frequently Asked Questions

Use a buy stop when you want to enter only if price breaks above a specific level, confirming momentum.

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