Sell Stop Indices Order Meaning Explained and Examples

What Does Sell Stop Indices Order Mean?

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

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

What is a Sell Stop Indices Order Example?

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

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

What is a Sell Stop Indices Order?

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

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

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