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

What is a Sell Limit Order?

A sell limit order is an order to sell indices at a better price after price has retraced upwards from its current zone.

A sell limit order is an order to sell after the market retraces upward within a downwards trend.

A sell limit is only executed when the prices moves upwards & retraces to the set sell limit zone.

What is a Sell Limit Order Example?

Sell Limit Order definition - Entry sell limit is an order to sell indices at a certain price which is a retracement level where price is predicted to pull back to before resuming the original trend.

Traders use sell limit orders to sell at better market price. These types of sell limit orders are available in most of the platforms, for our example we will be using MT4 platform.

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

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

Entry orders are placed by traders when they expect price to pullback downward after reaching this zone.

• Entry Sell Limit Ordersell at a level above the current market level.

Sell Limit Order

In the example explained and illustrated below a the sell limit order was put to sell at a trading price above the current market price. This is the level for the price retracement.

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

The price then rallied, went up to hit sell entry limit, & afterwards price continued to move downward in direction of the original down ward trend.

Order now Changes to a Sell order - Sell Limit Order Definition & Examples

When price got to the set sell limit pending order level the sell limit pending order changed into a sell order, this is therefore a good technique to sell at a better price after a price retracement.

What is Buy Limit Order?

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

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

A buy limit is only executed when the prices drops and retraces to the set buy limit zone.

What is Buy Limit Order Example?

Buy Limit Order definition - Entry limit is an order to buy a Indices at a certain price which is a retracement level where price is predicted to pull back to before resuming the original trend.

Traders use buy limit orders to buy at better market price. These types of buy limit orders are available in most of the platforms, for our example we will be using MT4 platform.

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

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

Entry orders are placed by traders when they expect price to bounce back after reaching this zone.

• Entry Buy Limit Orderbuy at a level below the current market level.

What is Buy Limit Order Example?

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

Buy Limit Order Placed to Buy Below the Current Market Price - What's Buy Limit Order?

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

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