I have a question about the stop-loss order
If you are in a long position, it is a sell STOP order.
If you are in a short position, it is a buy STOP order.
yes, that’s right
a stop-loss is an order for entering a position which will cancel out the one currently open, if the price reaches a specified level
if you’re in a long position, you’ll need that to be an entry order below where the price is now, which will come into operation if the price drops to that level, and that’s called a sell-stop order
and the opposite if you’re in a short position
this will help you:
4 Likes
Yes. It’s important to recognise this and to know the difference.
A sell stop order is executed at the bid price. A buy stop order is executed at the ask price. The difference between them is called the spread and it varies continuously when the forex markets are open.
3 Likes
Aye a stop order is ahead of where price is when it’s placed - above is a buy stop and below is a sell stop.
The opposite is a limit order.
One way for a learner to think of these terms is like a bus STOP - you get on board the direction the bus is going.
3 Likes
I am new in forex, but from what I’ve learnt so far, you’re right.
The stop loss order is a buy stop order if you short, and it is a sell stop orďer if you long.
It basically helps you get out of the market when the price moves against you.
1 Like
That is an awfully handy cheat sheet. Thanks man!
1 Like