N Rothschild
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depends what your trading but normaly a buy stop
joeking323
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STOP ORDER: Stop Order can be used for three purposes:
1) to minimise a loss on a long or short position.
2) to protect a profit on an existing long or short position
3) to initiate a new long or short position
Rhody Trader
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There's no "depends". If you are short you must buy to close. That being the case your stop is a buy stop.
N Rothschild
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yeh but some brokers use just a stop order like said above
You want to insure yourself against the price going up too much. Therefore, as said, you need to close a short position (sell) by a buy trade. Therefore you set a purchase stop at which you don't want to see the price higher (or at which point you do not still want to be short).
Rhody Trader
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A stop order to buy is a buy stop. Same, same.
