#OrderTypes101 stop order becomes a market order once a certain price is reached, triggering a buy or sell. It’s commonly used to limit losses or protect profits. For example, placing a stop-loss order below your purchase price helps prevent larger losses if the price drops. Similarly, stop orders can also trigger a buy if an asset breaks above a resistance level. Remember, once triggered, the order executes at the market price – which may differ in fast markets. It’s a smart tool for risk management and trading discipline