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

[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.