Buy Stop Order Example

Buy Stop Order Meaning

A buy Stop order is an order to buy a indices after the price rises to the set buy stop price area.

The buy stop order is always set to buy above the existing stock market price.

Buy Stop Order

In the trading examples below pending buy stop order was used to buy at a level above the current stock market price.

The price pair then went up to hit the buy stop trading order, and afterward price continued to move upward.

Buy Stop Order Meaning - Buy Stop Order Definition

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

How to Put a Buy Stop Order in Break-out - Buy Stop Order Example

A Buy index trade transaction was opened from the above pending buy stop order when the price broke a resistance level in the first example and when there was an upward price break-out after a consolidation chart pattern on the second buy stop order example.