A Stop-Market order is a conditional order to buy or sell a futures contract when the Mark Price reaches a specified Stop Price. It only becomes active once that price condition is met after which it executes as a market order.

How It Works

• Trigger Condition: The order is triggered only when the Mark Price reaches the Stop Price you define.
  
  

• Once triggered, the order becomes a market order, meaning it will execute immediately at the best available price in the order book.
  
  

 Important

• For a Buy Stop-Market Order, the Stop Price must be above the current Mark Price.
  
  

• For a Sell Stop-Market Order, the Stop Price must be below the current Mark Price.
  
  

 Stages of a Stop-Market Order

1. Untriggered – Waiting for the Mark Price to hit the Stop Price.
   
   

2. Triggered – Becomes a live market order once the Stop Price is reached.
   
   

3. Filled – Executes at the best market price available at that moment.
   
   

 Example

Let’s say the current Mark Price is $100.
 You place a Stop-Market Buy Order with a Stop Price of $105.

• If the price rises to $105, your order is triggered and filled at the best available price.
  
  

• If the price never hits $105, your order remains inactive.
  
  

Use Stop-Market orders to protect your positions or enter the market only when specific price levels are reached, ensuring better risk control.