What is the Difference between Sell Limit Indices Order & Buy Limit Stock Indices Order in Indices Trading?
What is Buy Limit Stock Indices Order?
A buy limit order is an order to buy indices at a better stock indices trading price after stock indices trading price has retraced from its current zone.
A buy limit pending order is an order to buy at a lower stock indices trading price than the current indices price
A buy limit is only executed when the stock indices prices drops and retraces to the set buy limit zone.
What is Buy Limit Indices Order Example?
Buy Limit Indices Order definition - Entry limit is an order to buy a Indices Trading at a certain stock indices price which is a retracement level where stock indices trading 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 the trading softwares, for our example we will be using MT4 stock indices trading software.
An entry buy limit 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. ( price retraces down )
Entry orders are placed by indices traders when they expect stock indices price to bounce back after reaching this zone.
- 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 example explained below, the buy limit order was placed to buy at a indices price below the current market indices trading 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 trading price then retraced and went down to hit buy entry limit, & afterwards stock indices trading price continued to move upward in direction of the original Indices upwards 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
What is Buy Stop Indices Order?
What Does Buy Stop Stock 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 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 Stock 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.
