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

What is Sell Stop Order?

What Does Sell Stop Order Mean?

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

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

What is Sell Stop Order Example?

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

The trading price of the trading instrument then went down to hit sell stop pending order, and afterward stock price continued to move in a down-wards direction.

What's Sell Stop Order?

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

Setting Sell Stop Order in a Break Out - Sell Stop Order Definition Described and Example

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

What is Buy Limit Order?

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

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

A buy limit is only executed when the stock 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 stock price which is a retracement level where stock indices trading price is predicted to pull back to before resuming the original trend.

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

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

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

Entry orders are placed by traders when they expect stock 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 trading example explained below, the buy limit order was placed to buy at a price below the current market trading 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 trading price then retraced and went down to hit buy entry limit, & afterwards stock indices trading 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