Sell Limit Indices Trading Order Meaning and Examples
A sell limit indices order is an order to sell indices at a better stock indexes price after stock indexes price has retraced upwards from its current level.
A sell limit indices order is an order to sell after the stock indexes trading market retraces upwards within a downward trend.
A sell limit is only executed when the stock indices prices moves upwards and retraces to the set sell limit level.
What is a Sell Limit Indices Order Example?
Sell Limit Indices Trading Order definition - Entry sell limit is an order to sell 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 sell limit indices orders to sell at better market indices price. These types of sell limit indices orders are available in most online trading platforms, for our example we will use the MT4 stock indexes trading platform.
An entry sell limit indices order of this type can be used to sell above the stock indexes trading market level (retracement pullback in a down indices trend Indices Trading market).
Sell limit - When selling, your entry sell limit is executed when the stock indexes trading market rises to your set indices price. (retraces up)
Entry orders are placed by indices traders when they expect stock indexes price to pullback downwards after reaching this level.
- Entry Sell Limit Indices Trading Order
sell at a level above the current market level.
Sell Limit Indices Order
In the stock indexes trading example explained and illustrated below a the sell limit indices order was placed to sell at a indices price above the current market indices price. This is the level for the stock indexes price retracement.
Sell Limit Indices Trading Order Placed to Sell above the Current Market Indices Price - What is a Sell Limit Indices Trading Order?
The indices price then rallied, went up to hit the sell entry limit, and afterwards stock indexes price continued to move downwards in the direction of the original Indices Trading downward trend.
Order now Changes to a Sell order - Sell Limit Indices Trading Order Definition and Examples
When stock indexes price hit the set sell limit indices order level the sell limit indices order changed to a sell order, this is therefore a good method to sell at a better stock indexes price after a retracement.