What is a stop loss market order?

An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a position in a security. read more

A stop-loss order may also be referred to as a “stop order” or “stop-market order.” If an investor uses a stop-loss order for a long position, a market order to sell is triggered when the stock trades below a certain price; the order then gets filled at the next available price. read more

Stop Loss Market Orders. Stop loss market orders use stop market orders as their underlying order type. This will make sense after reading through this section. Stop market orders are placed at a specific price. If the market price reaches that order price, the order will become "live" and execute as a market order. read more

For instance, if you own shares of JC Penney , which currently trades at $5.60, and you place a stop order to sell it at $5.00, your order will only be filled if stock JCP drops below $5.00. Also known as a "stop-loss order", this strategy allows you to limit your losses. read more