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Indices Buy Stop Order Definition

Stop Orders: Buy Stop Order

A Buy Stop Order is a pending stock order to buy a indices after the stock price rises to the set buy stop stock price quote area.

The buy stop order is always set to open a buy above current stock market price.

Buy Stop

In the trading illustrations below a buy stop order was set to open a buy trade at a price level above the current stock market price.

The price then went upto hit the pending buy stop, and afterward stock price continued to move in an upward market direction.

Indices Buy Stop Order Meaning - Indices Buy Stop Order Meaning - Index Buy Stop Trade Order Explanation

Indices Buy Stop Trade Order Explanation - Buy Stop

The buy stop trading order is also used to set a pending trading order when there is a consolidation stock chart pattern. A Buy stop order functions by placing a pending buy order just above a consolidation pattern on the stock chart, as illustrated below. If there is an upward price breakout following the consolidation setup, the buy stop order will trigger a new buy order once the predefined stock price level is reached.

Indices Buy Stop Pending Order Meaning - Indices Buy Stop Pending Order Meaning - Buy Stop Order

Indices Buy Stop Trade Order Explanation - Buy Stop Order on Quote

A Buy trade transaction was opened from the above buy stop pending order when the stock price broke a resistance area in the first example illustration and when there was an upward stock price break-out after a consolidation stock chart pattern on the second buy stop pending order example.

Indices Buy Stop Order Meaning - Indices Buy Stop Order Meaning - Buy Stop Order - Buy Stop Order on Quote

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