Stop-Market orders are orders to market buy/sell a futures contract once the Mark Price hits your specified Stop Price. It is a conditional order which only becomes active once the Stop price has been hit. Once the Stop price has been hit, a market buy/sell order will be activated.Please note that only Mark Price can be used to specify the Trigger Price of a stop order. In the case of a Buy stop order, the stop price must be below the current Mark Price. For a Sell stop order, the stop price must be above the current Mark Price.A stop order has three states:
Untriggered- Market has not reached the Trigger Price.
Triggered - Market has reached the Trigger Price. The stop order has become active and has entered the order book.
Filled - After getting activated, the stop order has been filled.
Example: Let’s say the price is currently $100. Using stop-market orders, you can set a stop buy price at $95. Once/if the price hits $95, a market order will execute at the best price available for the given quantity. If the price does not hit $95, the order will remain active without execution.For information on further order types, visit Delta Order Types. For video demonstrations, visit the Delta Youtube channel.