What is a Sell Stop Order?
Sell Stop
Forex Trading Glossary
Quick Answer: A sell stop is placed below current price to trade breakdowns. It triggers when price breaks support with downward momentum.
What is a Sell Stop Order?
A sell stop order triggers a market sell when price drops to your preset level. Traders use it to catch breakdowns or protect long positions.
Sell Stop Uses
- Trend continuation: Join bearish momentum as support fails.
- Risk management: Sometimes used to hedge long exposure.
- Volatility caution: Expect possible slippage around news.
- Confirm context: Ensure the broader backdrop supports further downside.
Related Terms
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