Order Types · Forex Glossary
Stop Entry — Definition & Meaning in Forex Trading
A clear, practical definition of stop entry written for EU retail forex traders.
Quick Answer
Stop Entry: A pending order that triggers when price reaches a specified level, entering the market in the direction of the breakout. Buy stop entries are above current price; sell stop entries below. Used primarily for breakout and momentum strategies.
What does Stop Entry mean?
Stop Entry is a order types concept every forex trader should understand. A pending order that triggers when price reaches a specified level, entering the market in the direction of the breakout. Buy stop entries are above current price; sell stop entries below. Used primarily for breakout and momentum strategies. Traders encounter stop entry throughout day-to-day decision-making, and a solid grasp of the idea helps avoid costly mistakes — especially for EU retail traders operating under ESMA rules where leverage caps, negative balance protection, and investor compensation schemes all intersect with practical trading concepts like this one.
How is Stop Entry used?
In practice, Stop Entry is an execution feature built into every mainstream retail trading platform, from MetaTrader 4 and MetaTrader 5 through to cTrader and proprietary broker terminals. You select stop entry in the order ticket when opening or modifying a position. Active traders rely on stop entry to automate both entries and exits without needing to monitor the market continuously.
Example
For example, a trader anticipating a breakout above 1.1000 on EUR/USD might use stop entry to automatically enter long the moment price crosses the level, avoiding the need to watch the chart in real time. If the breakout never occurs, the order simply expires unfilled.
Related Terms
Other order types concepts worth knowing.
Fill
The execution of an order. A fill occurs when a broker matches your order at a specific price. Partial fills happen when only part of the order is executed.
Limit Order
An order to buy or sell at a specified price or better. A buy limit is placed below the current price; a sell limit is placed above. The order will only fill at the limit price or a more favorable one.
Market Order
An order to buy or sell immediately at the best available price. Market orders guarantee execution but not a specific price, especially in fast-moving or illiquid markets.
Stop Loss
An order placed to close a position at a predetermined price to limit losses. Once the price reaches the stop level, the order becomes a market order. Stop losses are a cornerstone of risk management.
Take Profit
An order placed to automatically close a position when the price reaches a specified profit target. Take profit orders lock in gains and remove the need to manually monitor open positions.
Trailing Stop
A dynamic stop loss that moves with the market price by a set distance. As the price moves in your favor, the stop follows; if the price reverses, the stop stays in place, protecting accumulated profits.
Learn More
Deeper reading in our Learning Center.
Frequently Asked Questions
What does Stop Entry mean in forex trading?
How is Stop Entry used by traders?
Why does Stop Entry matter for EU retail traders?
Where can I learn more about Stop Entry?
Keep building your forex vocabulary
Browse all 291 forex trading terms in our comprehensive glossary.