clear and into the point.thanksOriginally Posted by ;
clear and into the point.thanksOriginally Posted by ;
yup. . Very straight to the stage. Take 1 sec to know itOriginally Posted by ;
Now you know the buy limit is below and the buy stop is above, the reason they do not have the exact same title is because they serve different purpose whatsoever.
This is a very useless thread. BS and BL create sense, if a person wishes to understand the difference btw.
But this thread is about why two distinct names for two distinct concepts.
don't say like this. This is a great of thread especially for newbies who doesn't now itOriginally Posted by ;
Yup, it maybe hard for many newbie to comprehend that, though we think that it's a frequent sense.Originally Posted by ;
I believe we can think from the origin of the two concept, which would assist us to comprehend them.
Also, Stops are often utilized to exit a transaction (ie StopLOSS).
Limits are used to TakePROFIT.
Another thingOriginally Posted by ;
Cease order is prone to gap. For instance buy stop, when there's gap to the upside down, you will find a bad price or higher price for your order
However, for buy limit, it won't be implemented when there's a gap to the upside. However for sell limit, when there's gap to the upside down, the order will be implemented with higher price consequently more profit particularly when the market decrease from the high gap.
For more accurate executed order, you should use limit order. You will often get the perfect price or greater price for your order.
Let say you wish to buy at a previous candle high.
Assuming that the price went above the former candle high.
You set buy limit order hoping the market will touch it before it continues its momentum to the upside. But if it does not touches the buy limit order then you definitely missed the opportunity to the upside
But if it touches instead in the next few seconds but in the next few hours or days, this can be dangerous because it could indie that the market is moving down or bearish instead up (bullish).