What's the Difference between Sell Limit Order and Sell Stop Order?

What is Sell Limit Order?

A sell limit pending order is an order to sell gold at a better price after price has retraced upwards from its current zone.

A sell limit order is an order to sell after the market retraces up-ward within a down-wards trend.

A sell limit is only executed when the prices moves upwards & retraces to the set sell limit zone.

Entry Limit Orders: Sell Entry Limit

Sell Limit Order definition - Entry sell limit is an order to sell gold at a certain price which is a retracement level where price is predicted to pull back to before resuming the original trend.

Traders use sell limit orders to sell at better market price. These types of sell limit orders are provided for in most of the online platforms, for our examples we will use MetaTrader 4 trading platform.

An entry sell limit order of this type can be used to sell above market level (retracement pullback in a down market trend).

Sell limit - When selling, your entry sell limit is executed when the market rises to your set price. ( price retraces up )

Entry orders are placed by traders when they expect price to pullback downward after reaching this zone.

• Entry Sell Limit Ordersell at a level above the current market level.

What is Sell Limit Order Example?

In the examples illustrated and described below a the sell limit order was set to sell at a price above the current market price. This is the level for the price retracement.

Sell Limit Order Placed to Sell above the Current Market Price

The price then rallied, went up to hit the sell entry limit, and afterwards trading price continued to move downward in direction of the original Gold down ward trend.

Gold Price Hits Sell Limit Order - Order now Changes to a Sell order

When price got to the set sell limit pending order level the sell limit pending order changed into a sell order, this is therefore a good strategy to sell at a better price after a price retracement.

What's Sell Stop Order?

What Does Sell Stop Order Mean?

A Sell Stop Order is an order to sell gold after the price rises to the set sell stop price zone.

The sell stop order is always set to sell below the current market prices.

What's Sell Stop Order Example?

In the example explained and shown below a sell stop order was set to sell at a level below the current market price.

The price of the instrument then went down to hit the sell stop order, & afterward price continued to move in a downwards direction.

Setting Sell Stop Order below Resistance Level - What's Sell Stop Order?

The sell stop order is also used to set a pending order when there's a consolidation pattern setup on a chart. The Sell stop order is used to set a sell order just below the consolidation pattern as illustrated below so that if there is a price break out downward after the consolidation pattern then a new sell order is opened - by the sell stop pending order once the sell stop price set is reached.

Setting Sell Stop Order in a Break out

A Sell trade was generated from the above sell stop pending order when the price broke a support level in the first example and when there was a downward price break-out after a market consolidation pattern setup on the second sell stop order example.