This guide compares four basic pending order types using Forex/CFD examples. It explains which quote each order uses and how the entry condition differs. The examples illustrate order mechanics; they are not price forecasts or recommendations to trade.
For the examples below, a buy uses the Ask quote and a sell uses the Bid quote. The current price in each buy example means the current Ask; in each sell example it means the current Bid. A chart may show a different quote, so a candle touching your level alone does not establish that the relevant order condition was met.
Buy Limit Order
Definition: An order to buy at a price below the current market price
Strategy Use: You believe the price will fall to a certain level and then rise
Example: Current EURUSD price is 1.1000; you place a Buy Limit at 1.0950, expecting the price to drop to that level before rebounding upward
Execution: The buy condition is reached when Ask falls to the specified limit or lower. Reaching the level alone does not prove that the order has filled.
Typical use: Often used to buy at support levels or during retracements in an uptrend
Buy Stop Order
Definition: An order to buy at a price above the current market price
Strategy Use: You believe once the price breaks above a certain level, it will continue rising
Example: Current EURUSD price is 1.1000; you place a Buy Stop at 1.1050, expecting a continued upward movement after breaking this resistance
Execution: The buy condition is reached when Ask rises to the specified stop or higher. The stop level is a trigger, not a guarantee of the final execution price.
Typical use: Often used to enter breakout trades or to confirm trend continuation
Sell Limit Order
Definition: An order to sell at a price above the current market price
Strategy Use: You believe the price will rise to a certain level and then fall
Example: Current EURUSD price is 1.1000; you place a Sell Limit at 1.1050, expecting the price to rise to that level before declining
Execution: The sell condition is reached when Bid rises to the specified limit or higher. Reaching the level alone does not prove that the order has filled.
Typical use: Often used to sell at resistance levels or during rallies in a downtrend
Sell Stop Order
Definition: An order to sell at a price below the current market price
Strategy Use: You believe once the price breaks below a certain level, it will continue falling
Example: Current EURUSD price is 1.1000; you place a Sell Stop at 1.0950, expecting continued downward movement after breaking this support
Execution: The sell condition is reached when Bid falls to the specified stop or lower. The stop level is a trigger, not a guarantee of the final execution price.
Typical use: Often used to enter breakdown trades or to confirm trend continuation
Choose an order type by the direction of the intended entry condition. A pending entry order is different from a Stop Loss attached to an existing position. Neither the order type nor the expectation in an example guarantees a profitable result.
Placement, triggering and execution are separate stages. An order can remain unfilled, expire, be cancelled or be rejected; available margin and the applicable execution conditions also matter. Check the actual order status and trade history before assuming a position opened. Avoid submitting a duplicate order solely because the chart touched the level.