Trade Stock Indices

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What is the Difference between Sell Limit Indices Trading Order and Buy Limit Indices Trading Order in Indices Trading?


What is a Buy Limit Indices Trading Order?


A buy limit indices order is an order to buy indices at a better stock indexes price after stock indexes price has retraced from its current level.



A buy limit indices order is an order to buy at a lower stock indexes price than the current indices price

A buy limit is only executed when the stock indices prices falls and retraces to the set buy limit level.



What is a Buy Limit Indices Order Example?

Buy Limit Indices Trading Order definition - Entry limit is an order to buy a Indices Trading 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 buy limit indices orders to buy at better market indices price. These types of buy limit indices orders are available in most online trading platforms, for our example we will use the MT4 stock indexes trading platform.


An entry buy limit indices order of this type can be used to buy below the stock indexes trading market level (retracement in an up indices trend market).


Buy limit - When buying, your entry buy limit is executed when the stock indexes trading market falls to your set indices price. (retraces down)


Entry orders are placed by indices traders when they expect stock indexes price to bounce back after reaching this level.

  • Entry Buy Limit Indices Trading Order
    buy at a level below the current market level.


What is a Buy Limit Indices Order Example?

In the stock indexes trading example explained and illustrated below, the buy limit indices order was placed to buy at a indices price below the current market indices price. Point B is the point at which it was set.

Buy Limit Indices Trading Order Placed to Buy Below the Current Market Indices Price

Buy Limit Indices Trading Order Placed to Buy Below the Current Market Indices Price - What is a Buy Limit Indices Trading Order?



The indices price then retraced and went down to hit the buy entry limit, and afterwards stock indexes price continued to move upwards in the direction of the original Indices Trading upward trend. When the limit buy order was hit it changed to a buy order.

Buy Limit Indices Trading Orders Now Changes to a Buy Order

Buy Limit Indices Trading Orders Now Changes to a Buy Order - Buy Limit Indices Trading Order



What is a Buy Stop Indices Trading Order?


What Does Buy Stop Indices Trading Order Mean?

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


The buy stop indices order is always set to buy above the existing market indices prices.

Buy Stop Indices Order

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


The stock indexes price of the indices trading instrument then went up to hit the buy stop indices order, and afterwards stock indexes price continued to move upwards.

What is a Buy Stop Indices Trading Order?

What is a Buy Stop Indices Trading Order?



The buy 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 Buy stop order is used to set a buy order just above the consolidation stock indexes chart pattern as shown below so that if there is a indices price breakout upwards after the consolidation stock indexes chart pattern then a new buy order is opened - by the buy stop indices order once the buy stop stock indexes price set is reached.

Setting Buy Stop Indices Trading Order in a Indices Trading Breakout

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



A Buy trade was generated from the above buy stop indices order when the stock indexes price broke a resistance level in the first example and when there was an upward stock indexes price breakout after a market consolidation stock indexes chart pattern on the second buy stop indices order example.

 

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