Sell Stop Indices Order and Sell Limit Order Defined and Explained with Examples

What's Difference between Sell Limit Order & sell Stop?

What Does Sell Stop Indices Order Mean?

A Sell Stop Indices Order is an order to sell indices after the stock price rises to the set sell stop stock price area.

The sell stop pending order is always set to sell below existing market prices.

Sell Stop Stock Order

In the examples explained below a sell stop order was put to sell at a level below the current market price.

The stock price of the indices instrument then went down to hit sell stop pending order, and afterward price continued to move downward.

What's a Sell Stop Indices Order?

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

Setting Sell Stop Indices Order in a Indices Break-out - Sell Stop Indices Order Definition Explained & Examples

A Sell trade was generated from the above sell stop pending order when the stock price broke a support level in the first examples & when there was a downwards stock price break out after a market consolidation chart pattern on the second sell stop order examples.

What Does Sell Limit Order Mean?

Sell Limit Order definition - Entry sell limit is an order to sell indices at a certain price which is a retracement level where stock 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 platform.

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

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

Entry orders are placed by traders when they expect stock trading 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 stock trading example explained and illustrated below a the sell limit order was put to sell at a price above the current market price. This is the level for the stock price retracement.

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