stop price: meaning, definition, pronunciation and examples
C1-C2Formal / Technical
Quick answer
What does “stop price” mean?
A price at which a stop order to buy or sell becomes active.
Audio
Pronunciation
Definition
Meaning and Definition
A price at which a stop order to buy or sell becomes active; the minimum price a seller will accept at an auction.
In finance, the trigger price for executing a stop-loss or stop-entry order. In auctions, a pre-determined reserve price below which an item will not be sold. It functions as a price limit that, when reached, triggers an action.
Dialectal Variation
British vs American Usage
Differences
Terminology is identical in both financial and auction contexts. Spelling conventions follow national norms for surrounding text (e.g., 'centre' vs. 'center').
Connotations
Identical technical connotations. No cultural variation in meaning.
Frequency
Equally frequent in relevant professional domains (finance, auction houses) in both regions.
Grammar
How to Use “stop price” in a Sentence
The seller set a stop price [of £500].The stop order will execute [at/if it reaches] the stop price.They placed a stop order [with] a stop price [of] $50.Vocabulary
Collocations
Examples
Examples of “stop price” in a Sentence
verb
British English
- The auctioneer will not stop-price the item below its reserve.
- We need to stop-price this order to manage risk.
American English
- The system automatically stop-prices the trade.
- They decided to stop-price the offering at $30.
adverb
British English
- [Not standard; this term is not used adverbially.]
American English
- [Not standard; this term is not used adverbially.]
adjective
British English
- The stop-price mechanism is crucial for automated trading.
- He reviewed the stop-price parameters on the platform.
American English
- The stop-price order was executed this morning.
- Adjust your stop-price settings in the account menu.
Usage
Meaning in Context
Business
Common in stock trading and investment: 'We placed a stop order with a stop price of $45 to limit losses.'
Academic
Used in economics or finance papers discussing trading algorithms, market microstructure, or auction theory.
Everyday
Very rare. Might be used when discussing online auction sites like eBay (reserve price).
Technical
Precise term in brokerage platforms, auction catalogues, and financial compliance documents.
Vocabulary
Synonyms of “stop price”
Strong
Neutral
Weak
Vocabulary
Antonyms of “stop price”
Watch out
Common Mistakes When Using “stop price”
- Using 'stop price' to mean the final price paid. (Incorrect: 'The stop price was £200.' Meaning final price? No, it's the trigger price.)
- Confusing 'stop price' with 'limit price'. A limit order defines the maximum/minimum acceptable price; a stop order defines when to *start* a market order.
- Omitting the article: 'set stop price' instead of 'set *a/the* stop price'.
FAQ
Frequently Asked Questions
No. A limit price is the maximum/minimum price you are willing to pay/accept. A stop price is the price that triggers an order to become active, which is then usually executed at the next available market price.
Typically, no. A reserve or stop price is usually confidential in auctions to encourage bidding. Bidders only know if it has been met.
The stop order is triggered and becomes a market order, which will be executed at the next best available price, which could be at, above, or below the stop price.
Primarily for risk management (stop-loss) to automatically exit a position at a predetermined loss level, or to enter a position (stop-entry) once a certain breakout price is reached.
A price at which a stop order to buy or sell becomes active.
Stop price is usually formal / technical in register.
Stop price: in British English it is pronounced /ˈstɒp ˌpraɪs/, and in American English it is pronounced /ˈstɑːp ˌpraɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[No common idioms for this specific compound term]”
Learning
Memory Aids
Mnemonic
Think of a bus STOP: the bus (your trade) only proceeds or halts when it reaches that specific point (the price).
Conceptual Metaphor
PRICE IS A TRIGGER / PRICE IS A BARRIER. The stop price is conceptualized as a line that, when crossed, activates a mechanism.
Practice
Quiz
In an auction context, what is a 'stop price' most synonymous with?