What is the Difference between Buy Limit Pending Order and Buy Stop Pending Order?
What's Buy Limit Pending Order?
A buy limit pending order is an order used to buy a gold at a better price after price has retraced from its current level.
A buy limit pending order is an order to buy at a lower price than the prevailing price
A buy limit pending order is only executed when the prices falls and retraces to the set buy limit area.
Entry Limit Pending Orders: Buy Entry Limit Pending
Buy Limit Pending Order definition - Entry limit order is an order to buy a XAUUSD at a certain price which is a retracement area where price is predicted to pullback to before resuming the original trend.
Traders use these buy limit pending orders to buy at a better market price. These types of buy limit orders are available in most of the trading platforms, for our example we shall use the MetaTrader 4 software platform.
A buy limit pending order of this type can be used by traders to buy below the market level (pullback in an up trend market).
Buy limit - When buying, your entry buy limit pending order is executed when the market falls to your set price. ( pulls back down )
Entry orders are placed by online traders when they expect price to bounce-back after reaching this level.
- Entry Buy Limit Pending Orderbuy at a level below the current market price.
What's Buy Limit Pending Order Example?
In the example shown below, the buy limit pending order was placed to buy at a price below the prevailing market price. Point Marked B is the point at which it was set.
Buy Limit Pending Order Placed to Buy Below the Current Market Price - What's Buy Limit Pending Order?
The xauusd then retraced & went down to hit the buy entry limit, and afterwards price continued to move up-ward in the direction of the original upwards trend. When the limit buy pending order was hit by price it changed in to a buy order.
Price Hits Buy Limit Pending Order - Buy Limit Pending Orders Now Changes into a Buy Order
What is Buy Stop Pending Order?
What Does Buy Stop Pending Order Mean?
A Buy Stop Pending Order is an order to buy a xauusd after the price rises to the set buy stop price level.
Buy stop pending order is always set to buy above existing market prices.
What's Buy Stop Pending Order Example?
In the examples shown below a buy stop order was placed to buy at a level above current market price.
The price of the gold then went upto hit the buy stop order, and afterwards price continued to move upwards.
Setting Buy Stop Pending Order above Resistance Level - What's Buy Stop Pending Order?
The buy stop pending order is also used to set a pending order when there's a consolidation pattern on a chart. Buy stop order is used to set a buy order just above consolidation pattern as illustrated & shown below so that if there is a price break out upwards after the consolidation pattern then a new buy order is opened - by buy stop order once the buy stop price set is reached.
Setting Buy Stop Pending Order in a Break Out - Buy Stop Pending Order Meaning and Example
A Buy trade was generated from the above buy stop order when price broke a resistance level in first examples & when there was an upward price break out after a market consolidation pattern on second buy stop pending order example.
