What is the Difference between Buy Limit Stock Order & Buy Stop Stock Order?

What's a Buy Limit Stocks Order?

A buy limit order is an order to buy a stock at a better stocks price after stocks price has retraced from its current area.

A buy limit pending order is an order to buy at a lower stocks price than the current stocks price

A buy limit is only executed when the stocks instrument stocks prices falls and retraces to the set buy limit area.

Entry Limit Stock Orders: Buy Entry Limit

Buy Limit Stocks Order definition - Entry limit is an order to buy a Stocks at a certain stocks price which is a retracement level where stocks price is predicted to pullback to before resuming the original Stocks trend.

Traders use buy limit pending orders to buy at better market price. These types of buy limit orders are provided for in most online platforms, for our example we will use MetaTrader 4 stock platform.

An entry buy limit pending order of this type can be used to buy below the stocks market level (retracement in an up stocks trend market).

Buy limit - When buying, your entry buy limit is executed when the stocks market falls to your set stocks price. (retraces down)

Entry orders are placed by traders when they expect stocks price to bounce back after reaching this area.

• Entry Buy Limit Stocks Orderbuy at a level below the current market level.

Buy Entry Limit Stocks Order Example

In the stocks example illustrated and explained below, the buy limit order was placed to buy at a stocks price below the current market stocks price. Point B is point at which it was set.

Buy Limit Stocks Order Placed to Buy Below the Current Market Stocks Price - What is a Buy Limit Stock Order?

The stocks instrument then retraced and went down to hit the buy entry limit, and afterwards stocks price continued to move upwards in direction of the original Stocks upwards trend. When the limit buy order was hit it changed to a buy order.

Stocks Price Hits Buy Limit Stock Order - Buy Limit Stocks Orders Now Changes to a Buy Order

What is a Buy Stop Stock Order?

What Does Buy Stop Stock Order Mean?

A Buy Stop Stocks Order is an order to buy a stocks after the price rises to the set buy stop stocks price area.

The buy stop pending order is always set to buy above the existing market stocks prices.

Buy Stop Stocks Order

In the example explained & shown below a buy stop order was placed to buy at a level above the current market stocks price.

The stocks price of the stocks instrument then went up to hit the buy stop pending order, & afterwards stocks price continued to move upward.

Placing Buy Stop Stocks Order above Resistance Level - What is a Buy Stop Stock Order?

Buy stop order is also used to set pending stocks order when there is a consolidation chart pattern on a stocks chart. Buy stop order is used to set a buy order just above the consolidation pattern as shown below so that if there is a stocks price break out upward after the consolidation chart pattern then a new buy order is opened - by the buy stop order once the buy stop stocks price that's set is reached.

Placing Buy Stop Stock Order in a Stocks Break-out - Buy Stop Stocks Order Meaning & Examples

A Buy trade was generated from the above buy stop pending order when the price broke a resistance level in the first example & when there was an upward stocks price break out after a market consolidation pattern on the second buy stop order example.