Definition of Buy Stop
A pending order to buy at a price above the current market price. It is used when a trader expects a breakout above a certain level to trigger further upward movement.
At a glance
Example
Example: a buy limit below market does not guarantee a fill if price never prints at your limit. Choose “Buy Stop” based on price priority versus fill priority.
Common mistake
Common mistake: using “Buy Stop” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Buy Stop” page and reopen it when reading broker specs so definitions stay consistent.