What's the Difference between Sell Limit Order and Sell Stop Order in Indices Trading?

What is Sell Limit Order?

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

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 area.

What is Sell Limit Stock 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 Indices trend.

Traders use sell limit orders to sell at better market price. These types of sell limit orders are available in most of 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. (retraces up)

Entry orders are placed by traders when they expect trading price to pull-back downward after reaching this area.

• 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 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, and afterwards price continued to move downward in direction of the original Indices down ward trend.

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

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

What's Sell Stop Stock Order?

What Does Sell Stop Order Mean?

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

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

What's Sell Stop Stock Order Example?

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

The price of the instrument then went down to hit sell stop pending order, and afterward price continued to move downward.

What's a Sell Stop Order?

Sell stop order is also used to set a pending order when there's a consolidation chart pattern on a chart. The Sell stop order is used to set a sell order just below the consolidation pattern as illustrated below so that if there is a price break out downward after the consolidation pattern then a new sell order is opened - by the sell stop pending order once the sell stop price that is set is reached.

Setting Sell Stop Order in a Break-out - Sell Stop Order Definition Explained & Examples

A Sell trade was generated from the above sell stop pending order when the price broke a support level in the first examples & when there was a downwards price break out after a market consolidation chart pattern on the second sell stop order examples.