Stop Order
An order that triggers a market order when an asset reaches a specified stop price to manage risk.
What is Stop Order?
Stop orders activate at a trigger price; a stop-loss sell at $4,400 for ETH executes as market if price drops, protecting against losses. Types include stop-loss (sell) and stop-entry (buy).
They remain hidden until triggered, aiding strategies on Fidelity for stocks and crypto.
In DeFi, auxiliary systems on AMMs approximate stops, but CLOBs offer native support for precise risk management.
Related Terms
Wrapped Token
A token that represents another digital asset, locked in a smart contract, to enable interoperability across blockchain networks or standards.
BitMine Immersion (BMNR)
A blockchain technology company focused on digital asset mining and treasury management, holding the world's largest ETH treasury.
BTC Risk (MSTR)
The annual probability that a liability's BTC Rating falls below 1x, estimated via Black-Scholes for asset drawdown.
Capital Inefficiency
The underutilization of provided liquidity in DeFi protocols, where most capital remains idle across unused price ranges.
Health Factor (Lending)
A metric indicating the safety of a borrower’s loan relative to collateral value.
51% Attack
A 51% attack occurs when a single entity or group controls over 50% of a blockchain’s computing power or stake, allowing them to manipulate the network’s transaction ledger.