The price that is associated with a stop order is referred to as stop price. When it comes to executing purchases or sales of a given stock or other security then the establishment of this price is very important .
Investor must provide stop price to broker
The investor must provide the broker with a price at which some sort of trading activity should commence in order to have the the transaction to function efficiently. When the current market value for that security reaches that designated stop price, the only broker is able to proceed to comply with the other terms that have been outlined in the stop order.
