Definition of Sell Stop
A pending order to sell at a price below the current market price. It is used when a trader expects a breakout below a certain level to trigger further downward movement.
At a glance
Term
Sell Stop
URL slug
sell-stop
Category
Orders & execution
Short answer
A pending order to sell at a price below the current market price.
Deep dives
Full A–Z glossary
Example
Example: a buy limit below market does not guarantee a fill if price never prints at your limit. Choose “Sell Stop” based on price priority versus fill priority.
Common mistake
Common mistake: using “Sell Stop” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Sell Stop” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A pending order to sell at a price below the current market price.
Order type and fill behaviour around “Sell Stop” decide whether entries and stops execute near the price you planned.
Common mistake: using “Sell Stop” as loose slang while your broker/platform specification defines it more narrowly.