Often, a buy-stop order is used to protect against uncovered short-stage losses. Short positions are opened by investors who expect that the price of the securities will fall. Investors might purchase lower-cost stocks and profit from the price difference between short and long shares. In order to protect himself from a rise in the stock price, the investor may place an order to cover his short position at a price that minimizes losses. When a short position is closed, a buy stop is sometimes referred to as a stop-loss order.