> For the complete documentation index, see [llms.txt](https://docs.bullpen.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bullpen.fi/trading/order-types/stop-market.md). # Stop Market Triggers a market order when price reaches your stop level. ## Use When Setting stop losses or entering on breakouts. ## Parameters * **Asset**: The token or contract you want to trade * **Size**: Amount to buy or sell * **Direction**: Buy/Sell * **Stop Price**: Price level that triggers the order (based on mark price) * **Reduce Only** (optional): Only reduces existing position ## How It Works 1. You place a stop market order with a trigger price 2. Order sits inactive, monitoring the mark price 3. When mark price hits your stop: * **Buy stop**: Triggers when mark price ≥ stop price (for breakout entries) * **Sell stop**: Triggers when mark price ≤ stop price (for stop losses) 4. A market order is immediately submitted 5. Order executes at best available price ## Important Notes * **Triggers on mark price**: Uses mark price (not last price) to prevent manipulation * **No price guarantee**: Once triggered, executes as a market order with potential slippage * **Immediate execution**: After trigger, fills immediately like any market order * **Gap risk**: In fast markets, execution price may be significantly worse than stop price ## Use Cases ### Stop Loss Protection * Sell stop below your entry to limit downside * Automatically exit losing positions * Standard risk management practice ### Breakout Entry * Buy stop above resistance to enter on momentum * Sell stop below support for short entries * Capture trending moves ## Best Practices * **Set stops wider** than you think, as tight stops get hit by normal volatility * **Account for slippage**: In volatile markets, expect 1-5% slippage past your stop * **Use stop limit** if you prefer price control over guaranteed execution * **Monitor mark price**: Understand what price will trigger your order * **Don't rely solely on stops**: They're not perfect protection in extreme volatility --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.bullpen.fi/trading/order-types/stop-market.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.