Sell Stop Order Meaning Explained and Examples

What Does Sell Stop Order Mean?

A Sell Stop Order is an order to sell indices after the stock price rises to the set sell stop stock price area.

The sell stop pending order is always set to sell below existing market prices.

What's Sell Stop Stock Order Example?

In the examples explained below a sell stop order was set to sell at a level below current market price.

The stock price of the trading instrument then went down to hit sell stop pending order, and afterward price continued to move down-wards.

What's a Sell Stop Order?

Sell stop order is also used to set a pending stock order when there's a consolidation chart pattern on a stock chart. The Sell stop order is used to set a sell order just below the consolidation pattern as illustrated below so that if there is a price break out downward after the consolidation pattern then a new sell order is opened - by the sell stop pending order once the sell stop stock price that is set is reached.

Setting Sell Stop Order in a Break Out - Sell Stop Order Definition Explained & Examples

A Sell trade was generated from the above sell stop pending order when the stock price broke a support level in the first examples & when there was a downwards stock price break out after a market consolidation chart pattern on the second sell stop order examples.