Sell Limit Order Meaning Explained and Examples

A sell limit order is an order to sell indices at a better price after price has retraced upward from its current area.

A sell limit order is an order to sell after the trading market retraces up-ward within a down-wards trend.

A sell limit is only executed when the trading prices moves upwards & retraces to the set sell limit area.

Entry Limit Orders: Sell Entry Limit

Sell Limit Order definition - Entry sell limit is an order to sell indices at a certain stock price which is a retracement level where price is predicted to pull-back to before resuming the original Indices trend.

Traders use sell limit orders to sell at better market price. These types of sell limit orders are available in most of platforms, for our example we will be using MT4 stock trading platform.

An entry sell limit pending order of this type can be used to sell above trading market level (retracement pullback in a down trend Indices market).

Sell limit - When selling, your entry sell limit is executed when stock trading market rises to your set price. (retraces up)

Entry orders are placed by traders when they expect price to pull-back downward after reaching this area.

• Entry Sell Limit Ordersell at a level above the current market level.

Sell Limit Order

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

Sell Limit Order Placed to Sell above the Current Market Price - What's Sell Limit Order?

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

Order now Changes to a Sell order - Sell Limit Order Definition & Examples

When stock price got to the set sell limit order level the sell limit pending order changed in to a sell order, this is therefore a good technique to sell at a better price after a retracement move.