Hi Steemins, How are you people. I hope you guyz are doing really well.
Today as per our theme requirement i am discussing four terminologies widely used in trading.
1. Buy Stop
2. Sell Stop
3. Buy Limit
4. Sell Limit
Buy Stop
Buy stop is a sort of request where the execution will be actuated when the price of a resource transcends a specific level more than where it is at the current point. Fundamentally, it is a request to buy a resource over the current level of price.
Merchants regularly use or set "Buy stop" request when they need to join a buy trade or bullish pattern after the value transcends a specific level. Realize that before they put in a buy stop request, they probably done their investigation and be certain that once price gets to that specific level, it will keep on going up. Let see the picture beneath.
Its very clear in picture after thorough analysis trader placed a buy order and puts a stop after reaching price at point of 25.60 USD shown in fig. It will automatically close the trade and earn amount will be posted to wallet.
Sell Stop
This is a sort of request put underneath the price for future execution. Here, dealers put in sell stop request when the cost is as yet over their space of interest. Dealers regularly submit sell stop request when they need to join a negative pattern when the price of a resource falls underneath certain level.
The screen capture underneath outlines buy stop and sell stop more clearly if you find any difficulty in understanding above graph.
Here you can see the level of current price at 2.1350. If it goes up then Buy Stop orders will trigger and it goes down then Stop Orders will trigger.
Buy Limit
A buy limit request is a kind of request put beneath the price with the plan to purchase at limited price. Brokers utilize this sort of request when they needs to buy at an extremely modest price so they can expand profit ratio and limit loss.
In above image buy limit shows if trend goes against the trader then it will stop the order with this minimum loss from the current price.
Sell Limit
A sell limit request is a kind of request set over the cost with the expect to sell when the price of a resource appreciates. This sort of request is consistently for future.
Above picture shows if price continously going up against the trader expected market movement then order will stop at Sell limit.
Here we are showing it in single picture where you can uderstand better before placeing a Sale or Buy order. Bscially Buy Stop is showing profit aginst buy orders and Buy limit is showing Buy loss against Buy orders. Similarly Sell Stop is showing profit against Sell Orders and Sell limit is showing loss against Sell Orders in trading.
Source
Hope you guyz find this benificial. Thanks.
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