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How do I enter a Buy Stop Order?

When an investor believes there is a buy opportunity at a given price, which is above current market price, he or she can place a buy stop order. This way the investor would not “miss a perceived buy opportunity” once the stop price is reached. When the stock price reaches the stop price a market order is activated and the order gets executed at the best price available.


Example

ABCD stock is trading at $10 per share. You, as the investor, understand that once the ABCD stock price reaches $15, it could go even higher. In this case, you can set a stop order with a stop price of $15, and once ABCD hits $15 per share, a market order will be activated and executed at the best price available. If ABCD stock price never reaches $15, your stop order won’t be executed.


Here is the step by step on how to enter a stop order:

  1. Open your Passfolio app
  2. Select the stock you would like to trade
  3. Tap Buy or Sell
  4. Tap on Stop
  5. Choose the Stop price
  6. Tap Continue
  7. Choose the expiration date
  8. Tap Continue
  9. Choose the amount of shares
  10. Review your order 
  11. Submit order

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