Buy Stop vs Sell Stop - What is a Buy Stop Order & Sell Stop Order?
Buy stop orders and Sell stop orders are orders used to buy above or below the current forex market price.
These orders are popularly used to trade when there is a forex consolidation pattern - placing a buy stop to buy above the consolidation chart pattern & placing a sell stop to sell below the consolidation chart pattern.
Buy Stop Forex Trade Order and Sell Stop FX Order after a Consolidation Chart Pattern
These stop orders are orders to buy above the market or to sell below the market.
- Buy Stop FX Trading OrderAn order to buy at a level above current market price.
- Sell Stop Forex Trading OrderAn order to sell at a level below current market price.
What is Buy Stop and Sell Stop? - Buy Stop Order and Sell Stop Order Definition Described with Examples
These buy stop & sell stop orders are used by traders wanting to trade a set up like the consolidation chart pattern but they do not want to wait & watch the prices all day long until there is a forex price breakout.
Therefore, forex traders will set these pending buy stop orders and sell stop orders above & below current price & a price break out in any of these direction will execute one of these pending stop orders & a buy trade or a sell trade will automatically be opened.
