Buy Stop Meaning in Forex
A Buy Stop Order means an order to buy an asset after its price has risen higher than its current price. In other words, you cannot set a Buy Stop Order below the current price.
An example is: if the current price of XAUUSD is 1.0500 and you set your Buy Stop Order at 1.0504, once the price rises and touches the Buy Stop, a market order will automatically be opened and the system will buy XAUUSD at the next available price.
A Buy Stop Order means an order to buy an asset after its price has risen higher than its current price. In other words, you cannot set a Buy Stop Order below the current price.
An example is: if the current price of XAUUSD is 1.0500 and you set your Buy Stop Order at 1.0504, once the price rises and touches the Buy Stop, a market order will automatically be opened and the system will buy XAUUSD at the next available price.
How to set a Buy Stop order on your MT5 chart is
1. Right-click on the price axis (vertical axis)
2. Click on "Trading"
3. Click on "Buy Stop"
Once the Buy Stop Order is opened you will see a line on your chart and you can drag/adjust this line to modify the order as you wish.
A Buy Stop Order means an order to buy an asset after its price has risen higher than its current price. In other words, you cannot set a Buy Stop Order below the current price.
An example is: if the current price of XAUUSD is 1.0500 and you set your Buy Stop Order at 1.0504, once the price rises and touches the Buy Stop, a market order will automatically be opened and the system will buy XAUUSD at the next available price.
A buy stop is an order you place so that you buy when the price is rising. You must place your buy stop above the current price so that once triggered, the system automatically buys at the next available price without your intervention.
Both MT4 and MT5 have by stop orders so you can place it on any of these platforms.
A buy stop is an order you place so that you buy when the price is rising. You must place your buy stop above the current price so that once triggered, the system automatically buys at the next available price without your intervention.
Both MT4 and MT5 have by stop orders so you can place it on any of these platforms.
A Buy Stop order in forex is used to lock in an exact price of an instrument and a Buy Stop order must be placed above the current price.
So, if you want to buy when price starts rising, you set a Buy Stop at the price you want, so that when price reaches the order, it is triggered at the exact price. My emphasis is on "exact price".
So let us assume you want to buy XAU/USD when the price rises to 2860.0, all you have to do is set the buy stop order at that price.
If due to volatility, the price suddenly jumps to 2862.0 without passing through 2860.0, then your buy stop order will not be executed because it works with a specific price. This is the main difference between a buy stop order and a buy limit order.
A buy limit order would have been filled at either the exact price or a better price.