Buy Stop Order Meaning Explained and Examples

What Does Buy Stop Order Mean?

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

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

Buy Stop Stock Order

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

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

What's Buy Stop Order?

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

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

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