Buy Stop Indices Order & Sell Stop Indices Order Definition Explained with Examples

Buy stop stock indices orders and Sell stop stock indices orders are stock indices orders used to buy above or below the current market indices price.

These stock indices orders are popularly used to trade when there's a consolidation stock indices pattern - placing a buy stop to buy above the consolidation stock indices chart pattern & placing a sell stop to sell below the consolidation stock indices trading chart pattern.

Buy Stop Indices Order & Sell Stop Stock Indices Order after a Consolidation Pattern

These stop stock indices orders are stock indices orders to buy above the stock indices market or to sell below the stock indices trading market.

• Buy Stop Indices OrderAn order to buy at a level above the current market indices price.

• Sell Stop Stock Indices OrderAn order to sell at a level below the current market indices price.

Buy Stop Indices Order & Sell Stop Indices Order Definition Described with Examples

These buy stop and sell stop orders are used by indices traders wanting to trade a set up like the consolidation stock indices pattern but they don't want to wait & watch the indices prices all day long until there's a indices price break out.

Therefore, indices traders will set these pending buy stop orders and sell stop orders above & below current stock indices price & a indices price break out in any of these direction will execute one of these pending stop stock indices orders & a buy indices trade or a sell index trade will automatically be opened.