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Stop Order

A Stop Order is an instruction to submit a buy or sell market order if and when the user-specified stop trigger price is attained or penetrated. A Stop order is not guaranteed a specific execution price and may execute significantly away from its stop trigger price. A Sell Stop order is always placed below the current market price and is typically used to limit a loss or protect a profit on a long stock position. A Buy Stop order is always placed above the current market price. It is typically used to limit a loss or help protect a profit on a short sale.

Example

Assume the current market price of a stock is 30: 

● If you submit a buy stop order at 33, and later the market price rises to 33, the buy stop order will be triggered, become a market order, and begin to be filled at the closest price to 33 depending on volume at that price. 

● If you submit a sell stop order at 26, and later the market price drops to 26, the sell stop order will be triggered, become a market order, and begin to be filled at the closest price to 26 depending on the volume at that price.


Risk Disclaimer

A Stop Order is an instruction to buy or sell at the market price once your trigger ("stop") price is reached. Please note that a Stop Order is not guaranteed a specific execution price and may execute significantly away from its stop trigger price, especially in volatile and/or illiquid markets.

Stop Orders may be triggered by a sharp move in price that might be temporary. If your Stop Order is triggered under these circumstances, you may buy or sell at an undesirable price. Sell Stop Orders may make price declines worse during times of extreme volatility. If triggered during a sharp price decline, a Sell Stop Order also is more likely to result in an execution well below the stop trigger price.

Futu simulates advanced order types on its books and routes the order to the destination when it reaches the trigger price. Futu simulates stop orders with the following default triggers:

● Sell Simulated Stop Orders become market orders when the last traded price is less than or equal to the stop trigger price.

● Buy Simulated Stop Orders become market orders when the last traded price is greater than or equal to the stop trigger price.

Unless you select specific trading hours, advanced orders will only be triggered during regular trading hours or continuous trading session.