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Indices Stop Loss Trading Order vs Limit Indices Trading Order Definition

Stop Loss Indices Trading Order Meaning

Stop Loss Indices Trading Order is a type of order placed after opening a indices trade that is meant to cut losses if the stock indexes trading market moves against you.

Stop Loss Indices Trading Order is a predetermined point of exiting a losing indices trade and it is meant to control losses in stock indexes trading.

A indices stop loss trading order is an order placed with your indices broker that will automatically close your open indices trade transaction when the stock indexes price of your open trade order reaches a predetermined indices price. When the set level is reached, your open indices trade transaction is liquidated.

These stop loss stock indices orders are designed to limit the amount of money that one can lose; by exiting the indices trade if a specific stock indexes price that is against the trade is reached.

For example, a indices trader might open a buy indices trade and put a stop loss of 20 pips, if the stock indexes price moves against the trader by 20 pips the indices stop loss stock indices order will be filled and the transaction will be liquidated thereby limiting the loss to 20 points (pips) - Indices Trading Stop Loss Indices Trading Order Definition.



Limit Indices Trading Orders: Buy Limit Indices Trading Order vs Sell Limit Indices Trading Order

Limit order definition - Indices limit is an order to buy or sell at a certain stock indexes price which is a retracement level where stock indexes price is predicted to pullback to before resuming the original Indices trend. Indices traders use stock indices limit orders to buy or sell at better market indices price. Indices Buy Limit Trading Order and Sell Limit Stock Indexes Order - types of limit stock indices orders are available in most online trading platforms, such as the MT4 stock indexes platform.

Buy Limit Indices Trading Order and Sell Limit Stock Indexes Order - A indices order of this type can be used to buy below the stock indexes trading market level (upward trend indices retracement) or sell above the stock indexes trading market level (downward trend indices retracement).

Buy limit Order - When buying, your indices buy limit is executed when the stock indexes trading market falls to your set indices price. (retraces down) - buy limit indices order set below market indices price

Sell limit Order - When selling, your indices sell limit is executed when the stock indexes trading market rises to your set indices price. (retraces up) - sell limit indices order set above market indices price

Limit orders are placed by indices traders when they expect stock indexes price to bounce back after reaching this set level.

  • Buy Limit Indices Trading Order
    buy at a level below the current indices market level.
  • Sell Limit Indices Trading Order
    sell at a level above the current indices market level.


Buy Limit Indices Trading Order Example

In the indices buy limit trading order example explained and illustrated below, the buy stock indices limit order was placed to buy at a indices price below the current stock indices market price. Point B is the point at which it was set.

Limit Indices Order Buy

How to Use Indices Limit Buy Orders - Limit Indices Order Buy Example



The stock indexes price then retraced and went down to hit the buy stock indices limit order, and afterwards the stock indexes price continued to move upwards in the direction of the original Indices upward trend. When the indices limit buy order was hit it changed to a buy indices order - How to Use Indices Limit Buy Orders.

How to Use Indices Limit Buy Orders

Indices Price Hits Buy Limit Indices Trading Order, Limit Buy Order Now Changes to a Buy Order- How to Use Buy Limit Indices Trading Orders



Sell Limit Indices Trading Order Example

In the indices sell limit trading order example explained and illustrated below a the sell stock indices limit order was placed to sell at a indices price above the current stock indices market price. This is the level for the stock indexes price retracement.

How to Use Limit Indices Trading Orders - Limit Indices Order Sell

How to Use Indices Limit Sell Orders - Limit Indices Order Sell


The stock indexes price then rallied, went up to hit the sell stock indices limit order, and afterwards the stock indexes price continued to move downwards in the direction of the original indices downward trend.

How to Use Indices Limit Sell Orders

How to Use Sell Limit Indices Trading Orders


When the stock indexes price hit the set sell limit indices order level the order changed to a sell order, this is therefore a good method to sell at a better stock indexes price after a retracement.

 

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