Buy Stop and Sell Stop basic question
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Thread: Buy Stop and Sell Stop basic question

  1. #1
    I'm sorry to ask such a simple question, but I simply don't get it. Maybe I need to just use it.
    Can you please give me a live scenario/example on why you would use a buy stop or market stop .
    I understand the others.
    Here is the definition of MT4, and after reading it, I have no clue.
    Thanks for your aid.Buy Limit -- buy supplied the future ASK price is equivalent to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are often placed in expectation of the the security price, having dropped to a certain degree, increases;
    Buy Cease -- buy supplied the future ASK price is equivalent to the pre-defined value. The current price level is lower compared to the value of the placed order. Orders of this type are often placed in expectation of the the security price, having attained a certain degree, will keep on increasing;
    Economy Limit -- market supplied the future BID price is equivalent to the pre-defined value. The current price level is lower compared to the value of the placed order. Orders of this type are often placed in expectation of the the security price, having increased to a certain degree, will collapse;
    Sell Stop -- market supplied the future BID price is equivalent to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are often placed in expectation of the the security price, having attained a certain degree, will keep on falling.

  2. #2
    I use all these orders widely. The simplest way for me to remember it is If price is below the price I want to buy at I use a Buy Stop to enter. If price is over the price I want to buy at, I use a buy limit.

    If the current price is below the price I want to sell at I use a market limitation. If price is over the price I want to sell at I use a sell stop.

  3. #3
    Quote Originally Posted by ;
    I use every one of these orders extensively. The simplest way for me to recall it's If price is below the price I want to buy at I use a Buy Cease to enter. If price is above the price I want to buy at, I use a buy limit.

    If the current price is below the price I want to market at I use a market limit. If price is above the price I'd like to market at I use a sell stop.
    I just chose to memorize it and this works well for me. I don't even think about it.

  4. #4
    Quote Originally Posted by ;
    I use all these orders extensively. The easiest way for me to recall it is If price is below the price I want to buy at I use a Buy Stop to enter. If price is over the price I would like to buy at, I use a buy limit.

    If the current price is below the price I would like to market at I use a market limit. If price is over the price I would like to market at I use a sell stop.
    Thank you Scott CEO, I apreciate it.

  5. #5
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    Quote Originally Posted by ;
    I am sorry to ask such a simple question, but I just don't get it. Perhaps I need to only use it.
    Could you please provide me a live scenario/example on why you would use a buy stop or sell stop .
    I know the others.
    This is the definition of MT4, and still after reading it, I don't have any clue.
    Thank you for your help.
    Buy Limit -- buy supplied the future ASK price is equivalent to the pre-defined value. The current price level is greater than the value of the put order. Orders of the sort are often put in anticipation of that the security price, having dropped to a certain level, increases; Buy Cease -- buy supplied the future ASK price is equivalent to the pre-defined value. The current price level is lower than the worth of the placed order. Orders of the sort are often put in anticipation of that the security price, having reached a certain level, will continue rising; Sell Limit -- sell supplied the future BID price is equivalent to the pre-defined value. The current price level is lower than the worth of the placed order. Orders of the sort are often put in anticipation of that the security price, having increased to a certain level, will collapse; Economy Stop -- sell supplied the future BID price is equivalent to the pre-defined value. The current price level is greater than the value of the put order. Orders of the sort are often put in anticipation of that the security price, having reached a certain level, will keep on falling.
    Here is a good example:

  6. #6
    Buy Limit -- I need to be Extended this Market although I believe I could get in at a better price than where the Market is right today. Thus... The Max I am ready to pay is eg. 25 pips BELOW the Current Price. In the event the Maket Falls 25 pips BELOW the Current Price, Get me in on a Buy Limit.
    Buy provided the future ASK price is equivalent to the pre-defined price. The current price level is higher than the value of the placed order. Orders of this sort are often placed in anticipation of that the security price, with dropped to a certain degree, increases;

    Buy Cease -- Price Resistance is eg. 25 Pips above Current Price but If that Resistance is Broken afterward I would like to be Extended this Market. So... When the Maket Rises 30 pips ABOVE the Current Price, Get me in on a Buy Stop.
    Buy provided the future ASK price is equivalent to the pre-defined price. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of the security price, having reached a certain level, will continue increasing;

  7. #7
    Thank you everyone for all those illuions.
    Somehow I do not see the difference.
    Is the consequence not the exact same either way? Can I not enter a limit order 25 pips from now if I feel the market will continue?
    My believing:

    Example 1)
    Price is at 1.9500, I think it will continue up, therefore I enter a limit order in 1.9525 which will be executed at that price, right?
    And also the Buy stop does exactly the same?

    Example 2)
    Price is at 1.9500 and I think that it goes up, but it is going down, therefore I input a limit order in 1.9450 believing it's going to bounce up.
    Again I am not sure when I would use a buy stop.

    I'm sorry that I dont get it, I appreciate your patience and help.



    Quote Originally Posted by ;
    Buy Limit -- I Need to be Extended this Market but I think I can get in at a better price than where the Market is correct now. So... The Max I am ready to pay is eg. 25 pips BELOW the Current Price. In the event the Maket Falls 25 pips BELOW the Current Price, Get me on a Buy Limit.
    Buy provided the future ASK price is equal to the pre-defined value. The current price level is higher than the value of the put order. Orders of the sort are usually put in anticipation of that the security price, having fallen to a certain level, will increase;

    Buy Stop -- Price Resistance is eg. 25 Pips above Current Price but If that Resistance is Broken afterward I would like to be Extended this Market. So... When the Maket Rises 30 pips over the Current Price, Get me on a Buy Stop.
    Buy provided the future ASK price is equal to the pre-defined value. The current price level is lower than the value of the put order. Orders of the Type are usually placed in anticipation of that the security price, having attained a certain level, will continue rising;

  8. #8
    Quote Originally Posted by ;
    Thank you everybody for those examples.
    Somehow I don't see the difference.
    Is the outcome not the exact same either way? Can I not enter a limit order 25 pips from today if I feel that the market will continue?
    My believing:

    Example 1)
    Price is at 1.9500, I think that it will continue up, therefore I enter a limit order at 1.9525 which will be executed at that price, right?
    And the Buy stop does the same?

    Example 2)
    Price is at 1.9500 and I think that it goes up, but right now it is going down, therefore I enter a limit order in 1.9450 believing it's going to bounce up.
    Again I am not sure when I would use a buy stop.

    I am sorry I dont get it, I appreciate your patience and help.
    1) A Limit Order is the same as saying to your Borker Buy @ 1.9525 Or Better. Since the Price is currently @ 1.9500 he'll fill you immediately as the Price is Better than you are eager to Pay.

  9. #9
    Quote Originally Posted by ;
    1) A Limit Order is the same as saying to a Borker Buy @ 1.9525 Or Better. Since the Price is currently @ 1.9500 he'll fill you immediately since the Price is far better than you are willing to Pay.
    Ohhhhhhhhhh, eventually, that's exactly what I wanted. Having a buy stop it would NOT be filled until it actually hits that price....damn that took me long time! Sorry, hahaha. Thank you very much.

  10. #10

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