I am sorry to ask such a basic question, but I just don't get it. Maybe I should just use it.
Could you please give me a live scenario/example on why you would use a buy stop or sell stop please.
I know the others.
Here is the definition from MT4, and still after reading it, I have no clue.
Thank you for your help.
Could you please give me a live scenario/example on why you would use a buy stop or sell stop please.
I know the others.
Here is the definition from MT4, and still after reading it, I have no clue.
Thank you for your help.
- Buy Limit — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having fallen to a certain level, will increase;
- Buy Stop — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on increasing;
- Sell Limit — sell provided the future "BID" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having increased to a certain level, will fall;
- Sell Stop — sell provided the future "BID" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on falling.
Steve