Difference between Buy Stop and Buy Limit


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If you place a sell pending order above the market price, that order is known as 8775 Sell Limit 8776 . For example, EUR/USD current price is and you want to sell EUR/USD if the price goes higher and reaches . Therefore, you have to set a sell limit order at .

Sell Limit / Sell Stop @ Forex Factory

After hours quotes made outside of regular trading hours can differ significantly from quotes made during regular trading hours. Stop orders configured to trigger outside of regular NYSE trading hours with a trigger method set to Bid/Ask may trigger in illiquid markets and/or on quotes with wide bid/ask spreads.

Types of Forex orders: limit order, market order, stop order

The Limit orders work opposite to Stop orders with BUY Limit order, you need to place it below  the current price, so if the exchange rate reaches your order it will convert to a BUY market order. The SELL Limit orders should have the entry price above the rate at that time, so when the price goes up to your order, it will automatically open a SELL position at the market.

Sell Limit And Buy Limit | FOREX Strategies

The primary advantage of a limit order is that it guarantees that the trade will be made at a particular price or better however, your brokerage will probably charge a higher commission for the limit order, and it's possible that your order will not be executed at all if the limit price is not reached.

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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.

Both are complex terms in the forex market. A simple definition cannot define the whole thing in a precise manner. Therefore, for better understanding, let&rsquo s cite an example here, if you place a pending order above the market price, that order will be as Buy stop. Suppose the current price of EUR/USD is , and you would like to buy when its price goes higher such as . Under such circumstances, you need to place a stop order at .

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A limit order is a market order that includes special instructions preventing it from being executed until the market price reaches the price you specify when creating the order. In many situations, a limit order reduces the risk of entering into a fluctuating market where the exchange rate could suddenly move against you.

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