Buy Stop
A stop order placed above the current price that triggers a market buy when price rises to the stop level — used to enter breakouts.
A buy stop is a pending buy order that activates only when the asset trades at or above the stop price. Since it is set above the market, it catches upward momentum and is the standard tool for breakout entries.
Once triggered, it executes as a market order, so the fill will be at or slightly above the stop price depending on speed and liquidity. Combining a buy stop with a limit (a buy stop-limit) caps the worst acceptable fill.
Example
XYZ consolidates below resistance at $52.00. You place a buy stop at $52.10. If the breakout prints $52.10, the order triggers and you are long.
Related Terms
Buy Limit
A limit order to buy at or below a specified price — placed below the current market to enter on a pullback.
BeginnerMarketable Limit Order
A limit order priced at or through the current best opposite quote — it acts like a market order but protects against extreme fills.
IntermediateSell Stop
A stop order placed below the current price that triggers a market sell when price falls to the stop level — the standard stop-loss mechanism for long positions.
BeginnerStop Order
An order that becomes a market order once the asset trades at or through a specified stop price.
Beginner