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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 Sell Limit Indices Trading Order?


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



A sell limit indices order is an order to sell after the stock indexes trading market retraces upwards within a downward trend.



A sell limit is only executed when the stock indices prices moves upwards and retraces to the set sell limit level.


What is a Sell Limit Indices Order Example?

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 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?



The indices price then rallied, went up to hit the sell entry limit, and afterwards stock indexes price continued to move downwards in the direction of the original Indices Trading downward trend.

Order now Changes to a Sell order

Order now Changes to a Sell order - Sell Limit Indices Trading Order Definition and Examples



When stock indexes price hit the set sell limit indices order level the sell limit indices order changed to a sell order, this is therefore a good method to sell at a better stock indexes price after a retracement.



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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