A stop entry order is placed to enter a position when price reaches a specified level, typically used to enter trends after breakouts or momentum confirmations. Buy stop orders are placed above current market price, while sell stop orders are placed below, allowing traders to enter positions only after price movement confirms their directional bias.

Stop entry orders help traders avoid premature entries and wait for momentum confirmation before establishing positions. These orders become market orders when triggered, potentially experiencing slippage during volatile conditions. Understanding stop entry mechanics helps optimize trend-following strategies and momentum-based entries.

Real-world example: A trader places a buy stop entry order at $155 for Apple stock currently trading at $150, entering long positions only if Apple breaks above resistance, confirming upward momentum before committing capital.