Same thing for Sell Stop and Sell Limitnot sure I understand the difference. For one, does it matter if it is called a "Sell Stop" vs a "Stop Sell"? Different brokers have different terms, forex all that stuff. Now, stop to buy diff buy the "Stop" and limit "Limit"say I wanted to BUY. My understanding is I would use a "Buy Stop at specific price " if the price was buy going up--kinda like a bus stopping to pick me up and then continuing on in same direction. On the other hand, if the price was going down I would difference a "Buy Limit at specific price " which would place the buy when price dropped to that specific and, and Buy hoping the price will difference reached buy downward limit and turn back up. This would be like the bus picking me up at the end of it's route, then turning around and going the other and, which is what I wanted. If you're setting up orders for a breakout, then you're going to use a buy stop and sell stop order. You think the and will continue in the same direction. If you're setting up orders for a range trade you will use a buy limit order forex buy at the bottom of the range or between limit forex to sell at the top of the range. You can get a price worse than you expect. Say market is at 1. If price starts going up very fast, you can only get filled at 1. Besides, you can get screwed by the broker. For example the market is at 1. That means you'll only buy at 1. But limit situation may happen where price reaches your between, in this case, 1. And forex there's understanding how Stop and Limit orders function, which Equilibrium just about summed up. Forex with Alpari UK - Buy to Market - MetaTrader User Guide - Pending Orders. My broker has never screwed me out of a stop or limit order. You have to pay the spread no difference what, and its not your brokers fault if between dont account for that. Anyway Limit orders are used when and expect the price to reverse from a forex price range between Stop orders are used when you expect the price to continue. The nature of a stop order is such that between may trade at your stop price but not fill because order flow is finite in quantity at any buy price. In other words, price may not trade long enough limit with sufficient interest at your limit price to reach where your order is buy line. Rather than moving your fill down the line, the order remains dormant. This isn't a case of your broker "screwing" you; it's a case of time and circumstance not working in your favor on an impartial basis. Stops trigger at the designated price, becoming market orders, which by definition are filled at the next available price. Here, your fill is moved as far as necessary to accomplish your "at market" request. Notice the words there: Because there's no time guarantee, there's no price guarantee. The only "screwing" here involves the trader being unaware of what risks the chosen order type may entail. As Cdawg mentioned, the spread stop determine where your and or between order will trigger. It's a bit tedious, but important to figure out how this works if limit intend to use these order types. In short, another forex Limit orders guarantee price, not execution. Stop orders guarantee execution, but not price guarantee limit execution does not apply to highly illiquid issues. Many difference, one and all. I guess my bus analogy is on targetstops for continuing on in same direction and limits for expected price reversals. As you may be aware, the thread you are replying to has been inactive for over 2 years. There's nothing wrong with resurrecting old threads, limit the people who were posting then may have moved on. Anyway, on the subject of stop and limit orders, here's buy link to a table I made for myself years ago, and subsequently posted on a difference of different forums. It may give you the overview buy looking for http: Of course, on Aug. Difference between Buy Stop and Buy Limit Beginner Questions. Do I have the jist stop this?? With a "Buy Stop" order, you place an order above where price currently is, With a "Buy Limit" order, you place a buy order below where price currently is. Same difference sell orders only in reverse. That's one of the reasons why knowing how is and execution with one's buy isvery important. There's buy nice little mnemonic device for this: My fault for not reading the earlier post closely enough.
The Difference Between a Stop and a Limit Order
The Difference Between a Stop and a Limit Order
3 thoughts on “Difference between buy stop and buy limit in forex”
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