Hello friends, I am newbie and I want some help from you. This question is discussed previously in this forum but it did not solve my confusion. So please help me with this. I wanted to know the difference between Sell Stop, Buy Stop and Sell Limit, Buy Limit.
Here is my confusion. For example, if the current market price is 1.2188 for eur/usd and I want to place an order like this. I want the price to reach 1.2225 and when it is coming back I want to place sell order at 1.2200. I don’t want the order to be executed when it is going up, but when it reaches certain price and coming back.
Buy stop and But limit is almost same, If we want to make order not in current rate running we can use but stop n limit.
More detail, I think that you must using demo account to practice it.
Or you can make real money in demo kontest from best broker Liteforex.
OP in your scenario with no open long positions you’d have to manually place the order to short 1.22 limit after the price has fallen back to 1.22. You could also place the same short 1.22 limit when price is at 1.2188 regardless of any of this. If you don’t want to watch the mkt for your entry specifics you can have the broker execute the trade with your specifications for a fee. Never seen any trailing orders offered like your ex.
Difference between Stops and limits can be dramatic depending on the mkt. Although your limit order may be triggered at specified price, if the mkt is fast then you may never get a fill at your limit obo - not smart if price is imperative.
A stop order is triggered and is then a mkt order. Downside again in a fast mkt is you may get filled, but far from your stop price. Happens all the time.
I’ll explain this purely in terms of buy orders (obviously for sell orders everything is just reversed) . . . a BUY STOP order is placed at a price level above where the market is currently trading. Traders using stop orders pay the spread. A BUY LIMIT order is placed at a price level below where the market is currently trading. Traders using limit orders (exclusively) may make the spread (they buy on the bid and can immediately try and sell at the ask, banking the spread as profit).
Traders using limit orders are considered ‘passive’ and are liquidity providers. Traders using stops are considered ‘active’ and are liquidity takers.
Stop orders are actually executed as Market orders - they are converted to a market order by your broker once the order price level is touched. Stop orders may be subject to slippage; limit orders aren’t. A stop order will always be filled, though the price isn’t guaranteed. A limit order may not always be filled, but the price is guaranteed.