In simple terms
“Stopped out” means the market reached the condition that activated a planned exit. If a stop order was resting, its trigger converted it into the order specified by venue rules; if the stop was manual, the trader applied a risk rule.
Trigger and fill
A stop loss is first a risk level. A conventional stop order may become a market order when triggered, so the fill may be worse than the stated stop during volatility, gaps, or thin liquidity. A stop-limit controls price but may receive no execution.
Reconstructing the event requires order type, trigger rule, timestamp, quantity, and actual fills.
Limit
A triggered stop does not prove that another participant targeted that order, and it does not establish a stop hunt. It is a price and execution event; attributing intent requires additional evidence.
Sources
- FINRA, Stop Orders: Factors to Consider During Volatile Markets — explains triggering, the difference between stop and fill, and short-lived moves.
- FINRA, Order Types — distinguishes stop, stop-limit, market, and their execution properties.
- Investor.gov, Types of Orders — describes a stop order becoming market after its trigger.