- Limit Order
- Stop Order
- Others (MT5 only)
Buy Limit
Set a price lower than the current market price. When the market price falls and reaches the specified price, the order will be executed automatically. This order type is used when a rebound is expected after a pullback. (Price pulls back before continuing its upward trend)
- Scenario: A pullback is anticipated, and entry is planned after price recovers to a specific level.
- Example: The current market price of AAPL is 150.00 USD. Based on market analysis, the price may decline to 145.00 USD before reversing upward. A Buy Limit order is set at 145.00 USD. When the price reaches this level, the order will be executed automatically.
Sell Limit
Set a price higher than the current market price. When the market price rises and reaches the specified price, the order will be executed automatically. This order type is used when a reversal is expected after a price increase. (Price pulls back before continuing its downward trend)
- Scenario: A retracement is anticipated, with exit planned at a higher level.
- Example: The current market price of AAPL is 150.00 USD. Based on market analysis, the price may rise to 155.00 USD before reversing downward. A Sell Limit order is set at 155.00 USD. When the price reaches this level, the order will be executed automatically.
Buy Stop
Set a price higher than the current market price. When the market price rises and reaches the specified price, the order will be executed automatically. This order type is used when continuation after a breakout is expected. (Breakout continuation, also known as momentum buying)
- Scenario: Entry is planned only after the price breaks through a key resistance level.
- Example: The current market price of AAPL is 150.00 USD. Based on market analysis, continuation is expected after the price breaks 155.00 USD. A Buy Stop order is set at 155.00 USD. When this level is reached, the order will be executed automatically.
Sell Stop
Set a price lower than the current market price. When the market price falls and reaches the specified price, the order will be executed automatically. This order type is used when continuation after a downside breakout is expected. (Breakout continuation, also known as momentum selling)
- Scenario: Entry is planned only after the price breaks below a key support level.
- Example: The current market price of AAPL is 150.00 USD. Based on market analysis, further decline is expected after the price breaks 145.00 USD. A Sell Stop order is set at 145.00 USD. When this level is reached, the order will be executed automatically.
The following order types are only available on MT5
Buy Stop Limit combines the characteristics of Buy Stop and Buy Limit. Two prices are set: Stop Price and Limit Price. After the price breaks the Stop Price, a retracement to the Limit Price is required for execution. If this retracement does not occur, the order will not be executed. (Breakout followed by a pullback before continuation upward)
- Example: The current AAPL price is 150.00 USD. Based on market analysis, a breakout above 155.00 USD is expected, followed by a pullback to 153.00 USD before continuation.
- Stop Price is set at 155.00 USD and Limit Price at 153.00 USD. The order will only be executed if the price returns to 153.00 USD after breaking 155.00 USD.
Sell Stop Limit follows the same logic, requiring both a breakout and retracement for execution. (Breakout followed by a pullback before continuation downward)
- Example: The current AAPL price is 150.00 USD. Based on market analysis, a breakout below 145.00 USD is expected, followed by a pullback to 147.00 USD before continuation lower.
- Stop Price is set at 145.00 USD and Limit Price at 147.00 USD. The order will only be executed if the price returns to 147.00 USD after breaking 145.00 USD.
