Using Stops and Limit Orders. http://www.financial-spread-betting.com/course/stop-order-types.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! This is a video for beginners. What are Stops and Limit Orders? What are Stop Limit Orders? Which Order to Use? Stop-Loss or Stop-Limit Order?
Orders: How and When to Use Them
A limit sell order: how would we use a limit sell order? If we are in a long trade (have bought into a market and expect the market to rise) and the market is going higher we can set an automated limit sell order on the trading platform to sell our trade at a certain price to crystallize our profits.
A limit buy order would be used when we have a short position (have sold the market expecting it to go lower) and we want to lock in profit by exiting the trade at a certain 'lower' price.
We could also use a limit order to get into a position if we want to get into a position at a certain level.
Let's move over to Stops.
Stop Buy Order - price is going higher but we are short on the trade so we're losing money and we want to cap our loss. So what do we do? We could use a stop loss order in this case a stop buy - the buy will be higher than our price so we will lose money unfortunately. Of course we could also use stop buy orders to get into positions.
Stop Sell Order - if we happen to be long and the market is going lower - we are losing money and if we want to exit the trade at some point to curb our loss we can use a stop sell order.
The various Limit Orders and Stop Orders are explained in this video.
