Example of a buy limit and a buy stop? - page 2

New comment
 

here is the answer key:

I have a additional question though. I know that a limit order is equivalent to putting your order in the book. The deal is going to happen at the price you chose, because somebody else is going to "hit" your order. Now, question: for the stop order, for example buy stop, if screen price is 10 dolars and I place a buy stop order at 11 dolars, metatrader is going to shoot a market order as soon as the screen price hits 11 dolars?

 
Ralph Freshour #:

Yes I've read those descriptions but they don't make sense to me as a newbie trader.

Example:

Buy Limit – buy provided the future "ASK" price is equal to the pre-defined value.

How does anyone know what the future price will be? I don't see a future price property to specify in the MqlTradeRequest structure.

What does the "pre-defined value" represent?


I'm trying to write an example in plain English of what this type of buy would look like:

To the broker: "I want to buy 100 shares (one Lot) of company xyz stock for $200.00 (Ask price) but I'm adding a Buy Limit to my order in the amount of $210.00. Therefore, execute this buy order only if the future stock price hits $210.00" ???

How far off the mark am I in understanding this Buy Limit term?

Thank you...

If you want to remember it in simple terms , then try to memorize like this

if we open a trade ,if price of that symbol goes to  the direction where we will have the profit will be marked as stop direction and where we will have losses will be marked as limit direction.

so if price goes up for a buy trade it will be in profit so upside of a buy pending trade is buy stop and dowside will be buy limit,  if 100 is the share price 110 is buy stop and 90 is the buy limit pending order

similarly price goes up for a sell trade it will be in loss so upside of a buy pending trade is sell limit and dowside will be sell stop,  if 100 is the share price 110 is sell limit  and 90 is the sell stop pending order

12
New comment