Difference between buy/sell stops and buy/sell limits

[SO]

Hi everyone, I have been doing some studying on this and still dont quite understand the concept. I understand the buy/sell stop but I'm still a little lost about the buy/sell limits.

What's stopping someone from putting a sell stop at a high where you think that it will retrace instead of a market limit?

What are the gaps?

thanks

[roderoxrce]

I am a part time Forex trader, so I need to utilize pending order egy! I basically open my pending order based on my analysis! I seem, pending order egy is your very much useful centre for your part time Forex traders!

[SO]

Thanks for the answer. Can't you use a sell stop rather than a sell limit to join the market?

[acraynjowl]

If you are sitting in the display and press the sell button to execute immediately, that is a market order (short for at market). Stop and limit orders don't get implemented straight away - the market must reach those specified prices first.

[xescax]

Thank You for the reply. Can't you use a sell stop instead of a sell limit to enter the market? You can on GFT and I'd imagine on others.
Of course, as been explained previously ,your selling at a point beneath the current market.

[laay8994]

Perhaps this can help
https://www.forexsoutheast.asia/attachments/1518488507.jpg

[SO]

Thank you for the responses. Smjones, on your chart, couldn't u use a sell stop rather than a sell limit? I am attempting to learn why they're separate. If I wish to market at a greater price, can not I use a market stop so that if the market goes up in my direction, it will activate the market stop with of the S/L T/P information? I am sorry but I am still confused. I can understand they're supposed to be used in a variety of instructions but I can see the benefit of using a market over a limitation etc..

[acraynjowl]

If I would like to sell at a greater price, can't I use a sell stop so that when the market goes up in my way, it is going to trigger the sell stop with all the S/L T/P information? If you want to sell at a higher price it might be a limit sell order, by definition. Any sell order above the current price is really a limit order, because that is the definition of a limit sell order. Any sell order below the current price is really a stop sell order. And the inverse for buy stop/limit orders.

Hope this helps.

[SO]

I believe trying to actually execute it in MT4 has shown me the visualization of everything you guys are referring to. I am still unclear about something tho. With the limit is it implemented? Does price have to be moving in your direction or does it just have to strike the price you have specified?

thanks.

[nerearooxus]

In any scenario, orders are triggered as soon as the price is struck.

For stop orders, price could be moving at the exact same direction, and for limit orders it'd be moving against the path, hitting the price and turning direction.

[carmenmorales4]

Hi there,

Have a look at this video. It's really well clarified in 3 minutes (faure clarified it absolutely really)

https://www.youtube.com/embed/jSVVtmmDQhQ?origin=https://www.forexsoutheast.asia.com

Hope that this helps

[alvarwz]

Pending Orders

Buy Stop = Moving LONG once price comes UP to hit the Entrance
Buy Limit = Moving LONG once price comes DOWN to Reach the Entrance price
Economy Stop = Moving SHORT once price Proceeds DOWN to hit the Entrance
Economy Limit = Moving SHORT once price comes UP to hit the Entrance price

[Zentano]

Lots of replies that are nice.

[Valancil]

I love to think about it in relation to breakouts.

All STOP orders are all breakouts. In other words, you are likely to buy or sell in that specific direction if the price keeps moving in this way.

When price is at 100, and you think it will return, you can put a SELL STOP in 99. That means, if the price goes down to 99, you put a SELL order.
When price is at 100, and you think it will go up, you can put a BUY STOP in 101. That means it the price goes around 101, you set a BUY order.

STOP ORDERS = TRADING WITH THE DIRECTION OF PRICE.

Limit orders are different.

When price is at 100, and you need to buy it BUT YOU THINK IT WILL GO DOWN SOME MORE, you set a BUY LIMIT in 99. Now, you BUY once it belongs DOWN into 99.
When price is at 100, and you need to sell it BUT YOU THINK IT WILL GO UP SOME MORE, you put a SELL LIMIT in 101. Now, you SELL once it goes UP to 101.

LIMIT ORDERS = TRADING AGAINST THE DIRECTION OF PRICE.

[parra]

Or just transaction with Oanda and allow orders be orders and that's it.

[alvarwz]

Lots of nice replies. Simple answers are normally the top ....though it's possible to take a simple response and extrapolote it to the extent you need to rub your mind and say....what the?

[vixo80]

Thanks guys, really helpful responses. I am a newbie and use prevent loss and tp at the moment just, but I would love to practise in placing different kinds of orders.

[ecwin]

Hi everyone, I have been doing some reading on this and still dont really understand the idea. I know that the buy/sell stop but I am still a bit lost about the buy/sell limits. What is stopping someone from placing a sell stop at a top where you think it will retrace instead of a sell limit? What are the differences? Thank you I use this lol

you'll never forget
https://www.forexsoutheast.asia/attachments/1518488513.jpg

[Jsok]

I don't to copy all text here, but you might find the all information about it upon mt5.com: MetaTrader 5 Help #8594; Trading #8594; Frequent Principles #8594; Forms of Orders #8594; Forms of Orders
Here is the pic also:
https://www.forexsoutheast.asia/attachments/15184885251509617134.jpg

[Morayrty]

Have also been searching for clearer explanations about this and finally found it!

I am trying to understand the mechanics of the stop order much better though.

I receive the limit orders and that they are as follows:

BUY LIMIT =gt; fill at ASK price you put
SELL LIMIT =gt; fill at BID price you put

But with stop orders, is this the way they work:

BUY STOP =gt; fill in market ASK price once the BID price you set is reached?
SELL STOP =gt; fill at market BID price once the ASK price you set is reached?

Confused on this since my limit orders have been implementing flawlessly. But with my stop orders, one recent example was :

SELL STOP G/N 2.3784 obtained executed at 2.37808 (that I believe was the BID if ASK was 2.3784). Is this how it works out? I presumed once the BID reached 2.3784 my order must have gotten implemented...

[medoumieta]

Are there any brokers who let your Buy limitations to get filled in the bid and vice versa for Economy limits in the ask ?
Thanks.

[jantpe]

For a Second FORGET Sell Buy. Think about Stop Limit.

Only note a STOP order is a continuation commerce. To put it differently, the trader is anticipating if the price of the underlying asset gets to that price of this order, the underlying asset will continue to proceed in the path it's been traveling.

Now, a LIMIT order is a change or pull back commerce. To put it differently, the trader is anticipating if the price of the underlying asset gets into the price of this order, the underlying asset will turn around and being moving in the opposite direction which has already been traveling.

So,
If you think the underlying asset That's Been going up will continue to move upward past the order price - set a Buy Stop (long commerce)
If you think the underlying asset That's Been going down will probably continue to move downward past the order price - set a Sell Stop (short commerce)

If you think the underlying asset That's Been going up will reverse and move lower than the order price - set a Sell Limit (short commerce)
If you think the underlying asset That's Been going down will reverse and return up higher than the order price - set a Buy Limit (long transaction)

[Artemisa87]

Good day,l am new to the forex trading and it appears interesting. I've read a couple posts in the forum regarding buy limit/sell limit/buy stop/sell limit-to me as a beginner it is so confusing, can someone clarify these terms to me in lay man terms.I have begun training with a Demo account and thus far l'm coping. Will appreciate if someone can shed some light together with the significance of those terminology

Due

K

[jesus8934]

@Kippie it has been clarified great in the others simply read the previous page. It sounds a bit complied at first for everybody but do not worry its easy once you receive it.
@metta87 I doubt There Are such brokers
Cheers

[Sudus]

Nice to see, you got your answer! By the way now I utilize pending orders in my personal trading! Because it will help me to get additional pips in my personal trading!

[anpkniomumo]

Folks I am attempting to trade in forex, and I have noticed a big effort to help our friend, as I am also a newcomer and trying to understand those concepts, allow me to tell you why I did not get it.

Let us take an example of the base price being 1.400

A BUY LIMIT makes sense to me
The price is dropping and I expect it will increase, therefore and I state into the market:
If the price falls to 1.350, BUY at that point and TAKE PROFIT at, say, 1.490
I take afterward a profit!

A BUY STOP makes sense to me
The price is raising and I expect it to keep raising, therefore and I state into the market:
If the price raises to 1.450, BUY at that point and TAKE PROFIT at, say, 1.500
I take afterward a profit!

Today, a SELL LIMIT doesn't makes sense to me
The price is raising and I expect it will drop, so I say into the market:
If the price raises to 1.450, BUY at that point and TAKE PROFIT at what? 1.350???
Where's the profit?

A SELL STOP doesn't makes sense to me
The price is dropping and I expect it will keep dropping, and I state to the market:
If the price falls to 1.350, BUY at that point and TAKE PROFIT at what? 1.300???
Where's the profit?

I expect to place SELL orders only when you have bought something, nevertheless in the FOREX market you create a trade expecting to buy and sell on precisely the same operation, as I know it. Therefore, where is the logic of SELL STOP and SELL LIMIT?

Folks, I am sure that this is my perception being wrong, so please will you help me here?

[anpknio.az]

I see, you already got your answer on pending order system! Basically, pending order is useful for the part time traders! However, I am a complete tine trader and typically I don't use pending orders within my live trading.

[Lercremes]

thanks for the Answer. Can't you use a sell stop instead of a market limit to enter the market? Sell Stop is a set pending order under current market price.

[klaucay96d]

Thanks guys, this write up are useful, it's rid my misconception.

[acraynjowl]

It's actually really simple. A buy limit order would be an order to buy the market at a price below the current price. A buy stop order would be an order to buy the market in a price above the current price.

It's just the inverse with sell orders.

A sell limit order would be an order to sell the market in a price above the current price. A sell stop order would be an order to sell the market at a price below the current price.

That is all there's to it.