Buy Stop Indices Order Meaning Explained and Examples

What Does Buy Stop Indices Order Mean?

A Buy Stop Indices Order is an order to buy indices after the stock indices price rises to the set buy stop stock indices trading price zone.

The buy stop order is always set to buy above existing market indices prices.

Buy Stop Stock Indices Order

In the example described below a buy stop pending order was placed to buy at a level above current market indices trading price.

The stock indices trading price of the indices trading instrument then went up to hit buy stop pending order, and afterward stock indices price continued to move upward.

What is Buy Stop Indices Order?

Buy stop order is also used to set a pending stock indices order when there is a consolidation stock indices chart pattern on a stock indices chart. The Buy stop pending order is used to set a buy order just above the consolidation stock indices chart pattern as illustrated below so that if there is a indices trading price break-out upwards after the consolidation stock indices pattern then a new buy order is opened - by buy stop order once the buy stop stock indices trading price set is reached.

Placing Buy Stop Indices Order in a Indices Break Out - Buy Stop Indices Order Definition Described and Example

A Buy trade was generated from the above buy stop pending order when the stock indices trading price broke a resistance level in the first examples & when there was an upwards stock indices price break out after a market consolidation stock indices chart pattern on the second buy stop order examples.