What is a Stop Order?
A Stop Order is an order to buy or sell a stock once the price reaches a specified price, known as the Stop Price. When the Stop Price is reached, a Stop Order becomes a Market Order and is executed at the best available price (which can be lower or higher than the Stop Price).
Keep in mind, Stop orders aren't guaranteed to execute until the price of the stock reaches the set Stop Price.
How do Sell Stop orders work?
For a Sell Stop Order, you can set a Stop Price which is below the current price of the stock. If the stock falls to your stop price, your sell stop order will become a sell Market Order. The execution price of the order may be lower or higher than the Stop Price.
Example:
Stock X is currently trading at $5 per share, but you want to sell the stock as soon as the stock price goes below $4 per share. This may be because you suspect that the price might fall further and you want to stop holding the share when it reaches $4. You'd set your stop price to $4.
If stock price of X falls from $5 to $4, your sell stop order will become a sell market order and your order will be executed at the best price available. If stock price of X doesn’t reach $4, your order won't be triggered.
How can I set a Stop Order?
You can set a stop order on the Revolut app. On the order screen, tap on the market order dropdown, on the top right corner. You can select the type as Stop order and enter the stop price value.
We support Good Till Cancelled (GTC) Orders. You can set up Stop Orders with expiry date of up to six months (you can choose from four options and set the order to expire on the same day, in 90 days, in six months. Alternatively, you can elect a custom date - any trading day in the next six months).