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



What is the Difference between Sell Limit Indices Trading Order and sell Stop?



What Does Sell Stop Indices Trading Order Mean?

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


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


Sell Stop Indices Trading Order

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


The stock indexes price of the indices trading instrument then went down to hit the sell stop indices order, and afterwards stock indexes price continued to move downwards.

What is a Sell Stop Indices Trading Order?

What is a Sell Stop Indices Trading Order?



The sell stop indices order is also used to set a pending stock indices order when there is a consolidation stock indexes chart pattern on a stock indexes trading chart. The Sell stop order is used to set a sell order just below the consolidation stock indexes chart pattern as shown below so that if there is a indices price breakout downwards after the consolidation stock indexes chart pattern then a new sell order is opened - by the sell stop indices order once the sell stop stock indexes price set is reached.

Setting Sell Stop Indices Trading Order in a Indices Trading Breakout

Setting Sell Stop Indices Trading Order in a Indices Trading Breakout - Sell Stop Indices Trading Order Meaning and Examples



A Sell trade was generated from the above sell stop indices order when the stock indexes price broke a support level in the first example and when there was a downward stock indexes price breakout after a market consolidation stock indexes chart pattern on the second sell stop indices order example.

What Does Sell Limit Indices Trading Order Mean

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 Trading 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

Sell Limit Indices Trading Order Placed to Sell above the Current Market Indices Price - What is a Sell Limit Indices Trading Order

 

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