Tuesday, May 4, 2010

Forex education : Difference of Buy Stop, Buy Limit,Sell Stop and Sell Limit

Buy Stop,Buy Limit,Sell Stop and Sell Limit all are pending orders.

Buy Stop and Sell Stop used in trend while Buy Limit and Sell Limit used in trend reversal.

Definition

Buy Limit - A pending order placed to buy a currency pair if the price falls to a certain level. You hope that if the price goes down to this level, that the price will then reverse and rise.

Sell Limit - A pending order

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