Demo Account Guide
Demo Account Guide
R

About Sell Limit, Buy Limit, Sell Stop, Buy Stop


Mathies De Vos

Aug 2 2020 11:56

Want to ask about Sell Limit, Buy Limit, Sell Stop, and Buy Stop, what do they mean and what's the difference? 


Daniel Robson

Aug 4 2020 12:07

All that is meant is a pending order.
1. BUY LIMIT = Pending BUY order below the current price
2. BUY STOP = Order Pending BUY above the current price
3. SELL LIMIT = Pending SELL order above the current price
4. SELL STOP = SELL pending order below the current price

pending order

After you click New Order it will appear as above. Prices are currently moving 1.2478 / 1.2476. You place a BUY LIMIT order. which means BUY order is below the current price of 1.2478 / 1.2476. namely 1.2470 with taking Profit 1.2480. pending order distance is at least 5 pips from the moving price. because the rules at the broker are like that. pay attention to OPEN PRICE YOU SET MUST 5 Pips

If the price is moving downwards and on our pending order at 1.2470 then your BUY order will enter the market then go up and about the take profit at 12480 then your order will be executed and closed itself. if you want to place a Stop Loss then place it at least 5 pips below 1.2470. Please try other pending orders on a demo account.


Arthur Davies

Aug 5 2020 01:16

What about Buy Stop Limit and Sell Stop Limit?


Daniel Robson

Aug 6 2020 06:30

@Artur Davies A stop-limit order is the execution price at a specified (or potentially better) time after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better. Buy stop-limit and sell stop-limit orders types do not exist on MT4 and only on MT5 (MetaTrader5).

pending order limit

Buy Stop Limit is basically a combination of Buy Stop and Buy Limit, while Sell Stop Limit is a mixture of Sell Stop and Sell Limit. Both pending orders work in 2 processes, where you need to place 2 target levels where the pending orders will take effect and the pending order area begins to be executed. 

Buy stop-limit: Get the buy limit price after the buy stop price is touched

For example, you want to buy limit of instrument X at the price of 7,000 when the price has reached 10,000. The way to use the buy stop-limit is to place a buy stop position at the price of 10,000 then set a buy limit at 7,000. This means that when the price reaches 10,000, then the buy limit at the price of 7,000 is active. If the price doesn't reach the price of 10,000, the buy limit is inactive.

Sell stop-limit: Get the sell limit price after the sell stop price is touched

For example, you want to sell limit for instrument X at the price of 7,000 when the price has reached 5,000. The way to use the sell stop-limit is to place a sell stop position at the price of 5,000 then set a buy limit at 7,000. This means that when the price reaches 5,000, the sell limit at the price of 7,000 is active. If the price does not reach the price of 5,000, then the sell limit is inactive.


Arthur Davies

Aug 8 2020 06:30

So, in the case of the buy stop limit, it means that it is actively waiting for a pullback from 10000 to 7000, right?


Daniel Robson

Aug 9 2020 06:32

@Arthur Davies That's right, after the price hits the buy stop at 10,000 then the buy limit at 7,000 is active. Long positions will be open when the price touches the buy limit again at 7,000.