Forex buy stop limit


In forex trading, it is evident that the trader has to move with strategic approaches and various management skills. Hence, there are different trading scenarios, all of which requires different orders for entry and exit in the market. One of such orders is buy stop forex.

Why there is difference between buy limit and buy stop

I have noticed when I was doing research on brokers, in their order execution policy, that some depending on platforms will treat Stop order as market order.

Buy limit sell stop forex

A stop-limit order is an order placed with a broker that combines the features of a stop order with those of a limit order. A stop-limit order will be executed at a specified price, or better, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better. BREAKING DOWN 'Stop-Limit Order' A stop-limit order requires the setting of two price points. The first point initiates the start of the specified action, referred to as the stop, while the second represents the outside of the investor’s target price, referred to as the limit. A timeframe must also be set, during which the stop-limit order is considered executable.

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Limit = Reverse, meaning buy limit is I want the price to go down, hit my order and 8775 reverse 8776 back up, therefore my buy order has to be below current market price. Same for sell pending orders.

Stop and limit orders in the forex market are essentially used the same way as investors use them in the stock market. A limit order allows an investor to set the minimum or maximum price at which they would like to buy or sell, while a stop order allows an investor to specify the particular price at which they would like to buy or sell.

There is another difference which is the pending order price. In case of Sell Limit, the price you enter has to be higher than the current market price, and in case of Sell Stop the price has to be lower than the current market price. If you enter the price wrongly, you will receive  8775 Invalid S/L or T/P 8776 error.

Now both the orders (stop loss and buy stop) are almost similar. The primary difference is that stop loss is used to exit short position and buy stop is used to enter long position.

So unless you have a system that is set up with very precise criteria to tell you when to close a trade, you will probably be better off if you use limit orders.

If you right clicked below the market current price, then the smaller menu will have  8775 Buy Limit 8776 at the top and 8775 Sell Stop 8776 below it.


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