An order which specifies a price at which the order is activated and becomes a limit order. A buy stop is entered above the current market and becomes a limit order when the commodity trades at or above the specified stop trigger price. A sell stop is entered below the current market. It becomes a limit order when the commodity trades at the stop price or below. The stop can immediately execute up to the limit price. Chicago Mercantile Exchange Glossary
Financial and business terms. 2012.