Buy Limit Indices Order Meaning Explained and Examples
A buy limit order is an order to buy indices at a better stock indices price after stock indices price has retraced from its current area.
A buy limit pending order is an order to buy at a lower stock indices price than the current indices price
A buy limit is only executed when the stock indices prices falls & retraces to the set buy limit area.
What is Buy Limit Indices Order Example?
Buy Limit Indices Order definition - Entry limit is an order to buy a Indices at a certain stock indices price which is a retracement level where stock indices price is predicted to pull-back to before resuming the original Indices trend.
Traders use buy limit pending orders to buy at better market price. These types of buy limit orders are available in most of trading softwares, for our example we will be using MT4 stock indices trading software.
An entry buy limit pending order of this type can be used to buy below stock indices trading market level (retracement in an up indices trend market).
Buy limit - When buying, your entry buy limit is executed when stock indices trading market falls to your set indices price. (retraces down)
Entry orders are placed by indices traders when they expect stock indices price to bounce back after reaching this area.
- Entry Buy Limit Indices Orderbuy at a level below the current market level.
What is Buy Limit Stock Indices Order Example?
In the stock indices trading examples explained below, the buy limit order was placed to buy at a indices price below the current market indices price. Point B is point at which it was set.
Buy Limit Indices Order Placed to Buy Below the Current Market Indices Price - What's Buy Limit Indices Order?
The indices price then retraced and went down to hit buy entry limit, and afterwards stock indices price continued to move upward in direction of the original Indices upward trend. When the limit buy order was hit it changed into a buy order.
Buy Limit Indices Orders Now Changes to a Buy Order - Buy Limit Indices Order
