Buy Stop Limit Order Example at Buying

Buy Stop Limit Order Example. A stop order initiates a market order to buy or sell a security once it reaches a certain price (the stop price). However, if the spreads open up, you could end up.

Once the price hits that level, the buy stop becomes either a limit or a market order, fillable at. A buy stop limit order will be executed at a specified price (or lower) after a given stop price has been reached. You want to enter the abc / xyz pair, but only if the price moves lower.

Limit and stop orders also have buy and sell subdivisions. Using buy limit and buy stop orders buy limit. A buy stop order is entered at a stop price above the current market price (in essence “stopping” the stock from getting away from you as it rises). You are looking to enter at a price that is below the current price and for price to then move back higher in your favor.