Stop Order
An order that triggers a market order when an asset reaches a specified stop price to manage risk.
What is Stop Order?
Stop orders activate at a trigger price; a stop-loss sell at $4,400 for ETH executes as market if price drops, protecting against losses. Types include stop-loss (sell) and stop-entry (buy).
They remain hidden until triggered, aiding strategies on Fidelity for stocks and crypto.
In DeFi, auxiliary systems on AMMs approximate stops, but CLOBs offer native support for precise risk management.
Related Terms
Paradigm
Research-driven crypto venture firm investing in early-stage protocols, with open-source software contributions advancing blockchain infrastructure.
Trust Compnay
Fiduciary entities that manage investment trusts holding cryptocurrencies for investors seeking regulated exposure without direct ownership.
Preferred Stock
Equity securities with priority over common stock for dividends and assets, used in Strategy's stack for Bitcoin funding.
Paper Hands
Traders or investors who sell their digital assets quickly at the first sign of market volatility or negative news, reflecting low risk tolerance.
Semantic Payment Metadata
Structured data describing payment terms for machine processing.
Option Value (MSTR)
The premium paid for an option contract, reflecting intrinsic and time value.