Stop Order

A Stop Order, in Metatrader 4, is also an instruction to your brocker to  execute a trade for you in the future at a specified price you entered.

Two (2) Types of Stop Order:
1. BUY STOP
2. SELL STOP

1. BUY STOP
It's an instruction to your broker to BUY a security or currency for you above its Current Price.

Uses:
- Hedging (Entering an Opposite trade to avoid depletion of capital)
- Speculate a future upward trade.

2. SELL STOP
It's an instruction to your broker to SELL a security or currency for you below its Current Price.

Uses
- Hedging (Entering an Opposite trade to avoid depletion of capital)
- speculate a future downward trade.

Next Topic: Market Exit Order

No comments:

Post a Comment