{"id":45245,"date":"2023-04-04T14:16:32","date_gmt":"2023-04-04T12:16:32","guid":{"rendered":"https:\/\/staging.captrader.com\/glossar\/sell-stop\/"},"modified":"2024-03-24T15:13:51","modified_gmt":"2024-03-24T14:13:51","slug":"sell-stop","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/sell-stop\/","title":{"rendered":"Sell Stop"},"content":{"rendered":"

The Sell Stop Order (also: Stop Sell Order) is a type of order that is used to sell any underlying at a previously defined price as soon as it falls below the stop price. This can be done to open a short position or to hedge an existing long position if it falls below a certain price level. (The latter is called a stop loss order.) The sell stop order is usually used when the underlying is to be sold in any case when the stop price is reached, even accepting a possibly worse actual execution price (slippage). In this article you will learn what a sell stop order is, how it works and when its use makes sense.<\/p>\n\n\n\n

What is a Sell Stop Order?<\/h3>\n\n\n\n

With a sell stop order, the broker is given the order to sell a financial instrument as soon as a previously defined price is reached or undershot. When the stop price is reached, the sell stop order is converted into a market order, i.e. execution takes place immediately at the next possible tradable price. The actual execution price may therefore differ from the previously defined stop price.<\/p>\n\n\n\n

Example: Sell Stop Order Boeing Share<\/h3>\n\n\n\n

The following example illustrates the functionality and a possible purpose of a Sell Stop Order:<\/p>\n\n\n\n

Boeing shares formed a local low at the beginning of 2020 at around USD 300 per share. Chartists or market technicians would expect a continuation of the downward trend if the share price falls below the low.<\/p>\n\n\n\n

If you had Boeing shares in your portfolio at the time shown in the following chart, you could have created a Sell Stop Order in the area of 300 USD to protect yourself from further losses when the local low is undershot. As a speculative trader, you could also have used the sell stop order to open a short position.<\/p>\n\n\n\n

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Sell stop order to open a short position or as a stop loss order of a long position<\/figcaption><\/figure>\n\n\n\n

As soon as the price falls below the stop price, the sell stop order is automatically converted into a market order and executed at the next possible price.<\/p>\n\n\n\n

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The sell stop order is executed immediately when the price falls below the stop price<\/figcaption><\/figure>\n\n\n\n

Create Sell Stop Order in TWS and Trading App<\/h3>\n\n\n\n

To create a sell stop order in the Trader Workstation or in the CapTrader Trading App, select a sell order and then change the order type to \"STP\" for a stop order. The detailed procedure is described in the article Stop Loss Order<\/a> described.<\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-45245","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}