What is the Difference between Buy Limit Gold Order and Buy Stop Gold Order?
What is a Buy Limit XAUUSD Order?
A buy limit order is an order to buy gold at a better price after xauusd price has retraced from its current level.
A buy limit order is an order to buy at a lower xauusd price than the current xauusd price
A buy limit is only executed when the prices drops and retraces to the set buy limit level.
Entry Limit Gold Orders: Buy Entry Limit
Buy Limit Gold Order definition - Entry limit is an order to buy a Gold Trading at a certain xauusd price which is a retracement level where xauusd price is predicted to pullback to before resuming the original Gold trend.
Traders use buy limit orders to buy at better market price. These types of buy limit orders are available in most online trading platforms, for our example we will use the MT4 platform.
An entry buy limit order of this type can be used to buy below the xauusd market level (retracement in an up gold trend market).
Buy limit - When buying, your entry buy limit is executed when the xauusd market falls to your set xauusd price. ( retraces down )
Entry orders are placed by traders when they expect xauusd price to bounce back after reaching this level.
- Entry Buy Limit Gold Orderbuy at a level below the current market level.
Buy Entry Limit XAUUSD Order Example
In the xauusd trading example illustrated and explained below, the buy limit order was placed to buy at a xauusd price below the current market xauusd price. Point Marked B is the point at which it was set.
Buy Limit Gold Order Placed to Buy Below the Current Market Gold Price
The xauusd price then retraced and went down to hit the buy entry limit, and afterwards xauusd price continued to move upwards in the direction of the original Gold Trading upward trend. When the limit buy order was hit it changed to a buy order.
Gold Price Hits Buy Limit XAUUSD Order - Buy Limit Gold Orders Now Changes to a Buy Order
What is a Buy Stop XAUUSD Order?
What Does Buy Stop XAUUSD Order Mean?
A Buy Stop Gold Order is an order to buy gold after the price rises to the set buy stop xauusd price level.
The buy stop order is always set to buy above the existing market xauusd prices.
What is a Buy Stop Gold Order Example?
In the examples below a buy stop order was placed to buy at a level above the current market xauusd price.
The xauusd price of the gold trading instrument then went up to hit the buy stop order, and afterwards xauusd price continued to move upward.
Setting Buy Stop Gold Order above Resistance Level - What is a Buy Stop Gold Order?
The buy stop order is also used to set a pending gold order when there is a consolidation chart pattern on a xauusd chart. The Buy stop order is used to set a buy order just above the consolidation chart pattern as shown below so that if there is a xauusd price breakout upwards after the consolidation chart pattern then a new buy order is opened - by the buy stop order once the buy stop xauusd price set is reached.
Setting Buy Stop Gold Order in a Gold Trading Breakout
A Buy trade was generated from the above buy stop order when the price broke a resistance level in the first example and when there was an upward xauusd price breakout after a market consolidation chart pattern on the second buy stop order example.
