Trade Stock Indices

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Buy Limit Indices Trading Order Meaning and Examples


A buy limit indices order is an order to buy indices at a better stock indexes price after stock indexes price has retraced from its current level.



A buy limit indices order is an order to buy at a lower stock indexes price than the current indices price

A buy limit is only executed when the stock indices prices falls and retraces to the set buy limit level.



What is a Buy Limit Indices Order Example?

Buy Limit Indices Trading Order definition - Entry limit is an order to buy a Indices 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.


Traders use buy limit indices orders to buy at better market indices price. These types of buy limit indices orders are available in most online trading platforms, for our example we will use the MT4 stock indexes trading platform.


An entry buy limit indices order of this type can be used to buy below the stock indexes trading market level (retracement in an up indices trend market).


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


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


  • Entry Buy Limit Indices Trading Order
    buy at a level below the current market level.


What is a Buy Limit Indices Order Example?

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

Buy Limit Indices Trading Order Placed to Buy Below the Current Market Indices Price

Buy Limit Indices Trading Order Placed to Buy Below the Current Market Indices Price - What is a Buy Limit Indices Trading Order?



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

Buy Limit Indices Trading Orders Now Changes to a Buy Order

Buy Limit Indices Trading Orders Now Changes to a Buy Order - Buy Limit Indices Trading Order



 

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