Learn To Trade Forex • Best Forex Trading Course • AsiaForexMentor

  • Best Brokers
    • Choosing Brokers
    • Comparing Brokers
  • Best by Country
    • flags Best Forex Brokers in Taiwan
    • flagsBest Forex Brokers in Singapore
    • flagsBest Forex Brokers in South Africa
    • flagsBest Forex Brokers in Japan
    • flagsBest Forex Brokers in Philippines
    • flagsBest Forex Brokers in Malaysia
    • flagsBest Forex Brokers in Vietnam
    • flagsBest Forex Brokers in India
    • flagsBest Forex Brokers in Thailand
    • flagsBest Forex Brokers in South Korea
    • flagsBest Forex Brokers in China
    • flags Best Forex Brokers in Indonesia
    • flagsBest Forex Brokers in UAE
    • flagsBest Forex Brokers in Dubai
    • flagsBest Forex Brokers in Italy
    • flagsBest Forex Brokers in Spain
    • flagsBest Forex Brokers in UK
    • flagsBest Forex Brokers in US
    • flagsBest Forex Brokers in Australia
    • flagsBest Forex Brokers in Switzerland
  • Brokers Review
  • Ranking List
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • MT5 Forex Brokers
      • cTrader Forex Brokers
      • Commodity Brokers
    • By Regulation
      • FCA Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • ECN Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
    • By Brokers Types
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platforms
    • Top 10 Best Forex Brokers
  • Brokers
    • Choosing Brokers Categories
    • Compare Forex Brokers
  • Ranking List
    • Best Forex Brokers
    • Brokers by Country
      • US Forex Brokers
      • UK Forex Brokers
      • Australian Forex Brokers
      • Swiss Forex Brokers
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • Commodity Brokers
    • By Regulation
      • ECN Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • FCA Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
      • Top 10 Best Forex Brokers
    • By Brokers Type
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platform
  • Academy
    • Forex Guide
    • Trading Videos
    • Trading Strategies
    • AFM One Core Program
    • Trade Rescue Operation
    • Corporate Training & Advisory
  • Promotions
  • Awards
  • Newsletter
  • Best Brokers
    • Choosing Brokers
    • Comparing Brokers
  • Best by Country
    • flags Best Forex Brokers in Taiwan
    • flagsBest Forex Brokers in Singapore
    • flagsBest Forex Brokers in South Africa
    • flagsBest Forex Brokers in Japan
    • flagsBest Forex Brokers in Philippines
    • flagsBest Forex Brokers in Malaysia
    • flagsBest Forex Brokers in Vietnam
    • flagsBest Forex Brokers in India
    • flagsBest Forex Brokers in Thailand
    • flagsBest Forex Brokers in South Korea
    • flagsBest Forex Brokers in China
    • flags Best Forex Brokers in Indonesia
    • flagsBest Forex Brokers in UAE
    • flagsBest Forex Brokers in Dubai
    • flagsBest Forex Brokers in Italy
    • flagsBest Forex Brokers in Spain
    • flagsBest Forex Brokers in UK
    • flagsBest Forex Brokers in US
    • flagsBest Forex Brokers in Australia
    • flagsBest Forex Brokers in Switzerland
  • Brokers Review
  • Ranking List
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • MT5 Forex Brokers
      • cTrader Forex Brokers
      • Commodity Brokers
    • By Regulation
      • FCA Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • ECN Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
    • By Brokers Types
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platforms
    • Top 10 Best Forex Brokers
  • Brokers
    • Choosing Brokers Categories
    • Compare Forex Brokers
  • Ranking List
    • Best Forex Brokers
    • Brokers by Country
      • US Forex Brokers
      • UK Forex Brokers
      • Australian Forex Brokers
      • Swiss Forex Brokers
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • Commodity Brokers
    • By Regulation
      • ECN Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • FCA Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
      • Top 10 Best Forex Brokers
    • By Brokers Type
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platform
  • Academy
    • Forex Guide
    • Trading Videos
    • Trading Strategies
    • AFM One Core Program
    • Trade Rescue Operation
    • Corporate Training & Advisory
  • Promotions
  • Awards
  • Newsletter
AFM Proprietary Program
  • Best Brokers
    • Choosing Brokers
    • Comparing Brokers
    • Best CFD Brokers
    • Best ECN Brokers
    • Best MT5 Brokers
    • Best MT4 Brokers
    • Best cTrader Brokers
    • Best Spread Betting Brokers
    • Best PayPal Forex Brokers
    • High Leverage Forex Brokers
    • Best Zero Spread Brokers
    • Lowest Spread Forex Broker
    • Best Raw Spreads Brokers
    • Best TradingView Brokers
    • Best Forex Broker for Beginners
    • Best Forex Brokers for Scalping
    • Best Forex Options Brokers
    • PAMM Account Brokers
    • Best Bitcoin Forex Brokers
    • Best Cent Account Forex Brokers
    • Cheapest Forex Brokers
    • Best Commodities Brokers
  • Best by Country
    • flags Best Forex Brokers in Taiwan
    • flagsBest Forex Brokers in Singapore
    • flagsBest Forex Brokers in South Africa
    • flagsBest Forex Brokers in Japan
    • flagsBest Forex Brokers in Philippines
    • flagsBest Forex Brokers in Malaysia
    • flagsBest Forex Brokers in Vietnam
    • flagsBest Forex Brokers in India
    • flagsBest Forex Brokers in Thailand
    • flagsBest Forex Brokers in South Korea
    • flagsBest Forex Brokers in China
    • flags Best Forex Brokers in Indonesia
    • flagsBest Forex Brokers in UAE
    • flagsBest Forex Brokers in Dubai
    • flagsBest Forex Brokers in Italy
    • flagsBest Forex Brokers in Spain
    • flagsBest Forex Brokers in UK
    • flagsBest Forex Brokers in US
    • flagsBest Forex Brokers in Australia
    • flagsBest Forex Brokers in Switzerland
  • Brokers Review

    Forex Brokers

    • AvaTrade
    • Plus500 標誌 Plus500
    • FP Markets
    • TMGM
    • EXNESS
    • XM
    • JustMarkets
    • HTFX
    • Doo Prime
    • Markets4you

    Stock Brokers

    • XM
    • Interactive Brokers
    • Orbex
    • RoboForex

    Crypto Exchanges

    • Binance
    • Coinbase
    • Gemini Exchange
    • Kraken

    Prop Firms

    • iFunds
    • IC Funded
    • The 5ers Logo (2)-svg The 5%ers
    • TopStep

    Binary Brokers

    • IQ Option
    • Pocket Option
    • RaceOption
    • IQCent
  • Ranking List
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • MT5 Forex Brokers
      • cTrader Forex Brokers
      • Commodity Brokers
    • By Regulation
      • FCA Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • ECN Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
    • By Brokers Types
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platforms
    • Top 10 Best Forex Brokers
  • Brokers
    • Choosing Brokers Categories
    • Compare Forex Brokers
  • Ranking List
    • Best Forex Brokers
    • Brokers by Country
      • US Forex Brokers
      • UK Forex Brokers
      • Australian Forex Brokers
      • Swiss Forex Brokers
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • Commodity Brokers
    • By Regulation
      • ECN Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • FCA Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
      • Top 10 Best Forex Brokers
    • By Brokers Type
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platform
  • Academy
    • Forex Guide
    • Trading Videos
    • Trading Strategies
    • AFM One Core Program
    • Trade Rescue Operation
    • Corporate Training & Advisory
  • Promotions
  • Awards
  • Newsletter
AFM Proprietary Program

What Is a Buy Stop Order, and Why Is It Important for any Trader?

Written by

Ezekiel Chew

Updated on

January 29, 2024

i
Its a default text
January 29, 2024 6:17 am No Comments

Buy Stop Order Guide

A Buy Stop Order or also called stop price is made when a trader invests or buys a stock or asset at a price that is higher than the current market price – contrary to the usual low or minimum price. This kind of order is usually made whenever a trader thinks that there is a great possibility that the price will continue to go higher beyond the anticipated buying price.

It is an important order to use for any trader to secure a position in a possible upward trend, and to schedule when to buy or sell in the chart.

Contents

    • How it works?
    • When to use Buy Stop Orders?
    • How to set a Buy Stop Order?
    • Why is a Buy Stop Order Important?
    • Example of Buy Stop Order on Chart
    • Conclusion
    • FAQs 

How it works?

How a buy stop order works
Photo Credits: https://www.affirmativeactionplan.co/wp-content/uploads/2019/08/how.jpeg

To make sure that the trader would be able to get hold of the anticipated increase in price, the trader assigns a certain price value above the current price and will be cashed-in or executed once the price moves up the existing market price.

Of course, a buy or sell using this order can only come about if the future price will truly move higher than the current price.

The good thing about setting this kind of order is that you don’t have to sit around and wait for it – simply assign a specified price value above the current price and then let the trading platform do the work. The buy order will then be executed when the assigned price is met.

Back to top

When to use Buy Stop Orders?

when to Buy Stop Orders
Photo Credits: https://i.ytimg.com/vi/6Lu71eyaLoo/maxresdefault.jpg

While these type of orders are commonly used when trading stocks, it also works for other tradable mediums such as forex, options, derivatives, and others. This order is a great strategy to take hold of when looking to profit from markets with a strong upward trend. It is used to secure a long position in an expected upward trend.

Back to top

How to set a Buy Stop Order?

How to set a Buy Stop Order
Photo Credit: https://images.financialexpress.com/2019/09/13-1-3.jpg

To set up this order, a trader should be able to identify the possible opportunities for a specified price increase or rise. The worst thing you’d want is to establish this order at a downtrend market.

So, before actually setting up a Buy-Stop Order or stop price order, make sure you are trading on a market that is going uptrend. The possible trend of the market can be assessed through fundamental analysis and through chart patterns. Chart patterns in particular are popular and widely-used strategies in determining specified price movements.

Back to top

Why is a Buy Stop Order Important?

Why is a Buy Stop Order Important
Photo Credits: https://i.ytimg.com/vi/iWtn9nf0fiw/maxresdefault.jpg

The first importance of using this kind of order is to verify the trend of the market.

As discussed earlier, this buying order will only be accepted or executed when the price is moving upward. Hence, this buying order serves as a protection against downward trends or fallbacks.

It helps the trader secure a long position for an expected uptrend but also keeps the trader away from trading a downtrend market.

Back to top

Example of Buy Stop Order on Chart

As an illustration, let’s look at the chart for Apple stock. During this particular range, the price bounced back to a previous resistance level. Many traders consider this resistance level as a breakout level where the price has a possibility to break through the previous high price. The projected price shows an anticipated upward movement.

To set a Buy Stop Order in this regard, the trader assigns a buy order at a specific price that is a price higher than the current price. If the future price level moves upward, the order will be executed. However, if the price moves down from the current price, the order will not be executed.

Example of Buy Stop Order on Chart

The next image shows that the order has been executed, and the price moved toward the desired direction. After the price has increased considerably, a sell order has been established and executed to profit from the price movement.

Just like the Buy-Stop Order, a Sell Limit Order, limit orders or limit price order should also be considered carefully prior to execution.

Example of Buy Stop Order on Chart 2

Back to top

Conclusion

Getting in control of trade is something that every trader wants to achieve. While there is no guaranteed way to control the market, there are certain ways on how to have an edge on every trade – and that is through Buy-Stop Orders. These buying orders provide you with opportunities to ride a possible market uptrend. Also, it keeps you away from investing in a market that is headed downwards.

The best thing about setting up a BuyStop Order is that you don’t have to regularly monitor or track the movement of the price in a chart. Simply designate your Buy Stop price value and let the market do its work. The Order will be executed right away if the price meets the desired value.

While a Buy Stop Orders on its own is a great strategy to gain profits and to know when to buy or sell, incorporating it with other systems, chart patterns, and other strategies can further improve its effectiveness in gaining momentum on the market.

Back to top

FAQs

What happens if the Buy Stop Order is not met?

If the Buy Stop Order has not been met or executed, the order will remain open. This means, the order will still be active and will only be executed when the price moves back to the assigned price value.

The life or duration of the order will depend on the assigned type of order – whether GTC (Good-Till-Cancelled) or ATO (At-The-Opening). GTC can last for long periods around 60 days to a year, while ATO lasts within 24 hours.

What is the ideal Buy Stop Order?

An ideal Buy-Stop Order would be at a level that is close to the current price. Furthermore, the ideal Buy-Stop order is determined by using historical price levels such as break-out levels, resistance levels, channels, or the ‘peaks’ of certain chart patterns. It would also be good to consider the volume to determine the strength of the market that is moving upward.

What is a Stop Limit Order?

A Stop Limit Order is the combination of the Stop buy order and the limit price order in order to reduce risks. While the Buy-Stop Orders are where a trader initiates the ‘buy’, the Limit Orders will set the ‘sell’ to reduce the risks of losing profits. It focuses on a particular ‘safe trading range’ that is profitable for a trader.

Is a Buy Stop Order different from Limit Order and Market Order?

Both the Buy-Stop Order and the Limit Order or buy limit order are the same in the sense that they are both triggered by price movement. Once the price hits the designated price value, the Buy-Stop Order and the Limit Order will be executed.

Furthermore, a Buy Stop order is commonly used for an uptrend price movement, while a buy limit order is used during expected price reversals.

On the other hand, an order becomes a market order if the trader buys a stock or asset right away regardless of the stock's price. In other words, the order becomes a market order as soon as the trader buys the current price in the market – thus the name ‘Market’ order.

Back to top

forex mentor
« Previous
Next »
Leave a Reply

Click here to cancel reply.

GET THE PROPRIETARY ONE CORE PROGRAM
The same system I use to make 6 figures a trade with

5 PART SYSTEM TO MAKE REALLY BIG MONEY IN TRADING

FREE TRAINING

We have generated over millions of dollars via trading with the 5 part system outlined in this free training. Download it now before this page comes down or when I decide to stop mentoring.
 

Services

  • AFM One Core Program
  • Corporate Forex Training
  • Trade Rescue
  • Speak At Your Event
  • AFM One Core Program
  • Corporate Forex Training
  • Trade Rescue
  • Speak At Your Event

Resources

  • Forex Trading Strategies
  • Forex Blog
  • Forex Vlog
  • Download Trading Platform
  • Forex Position Size Calculator
  • Forex Brokers Review & Rating
  • Forex Trading Strategies
  • Forex Blog
  • Forex Vlog
  • Download Trading Platform
  • Forex Position Size Calculator
  • Forex Brokers Review & Rating

Company

  • Who is Asia Forex Mentor
  • Asia Forex Mentor Reviews
  • Contact Us
  • Affiliate Program
  • Advertise with us
  • Best Crypto Broker
  • Broker Awards – Asia Forex Mentor
  • test2323
  • Who is Asia Forex Mentor
  • Asia Forex Mentor Reviews
  • Contact Us
  • Affiliate Program
  • Advertise with us
  • Best Crypto Broker
  • Broker Awards – Asia Forex Mentor
  • test2323

Address

6 Raffles Boulevard, #03-308,
Singapore 039594

Whatsapp Text: +65 8786 8319

Disclaimer: Any Advice or information on this website is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by ECG Pte Ltd, it’s employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd’s, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, Stocks, Indexes, Commodities, Crypto and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

AFM

#1 FOREX MENTOR IN ASIA

©2025 ASIA FOREX MENTOR. All Rights Reserved.

| Disclaimer – Terms of Use | Privacy Policy | Cookie Policy | Privacy Policy – Europe GDPR

English | Français | Deutsch

Facebook-f Youtube Instagram Tiktok Linkedin

Get Ezekiel Chew’s 5 Day Email Course on “How to be in the Top 10% league of Forex Traders”

100% Free – Delivered to your inbox

Subscribe to the most popular Forex Trading  blog online, join thousands of readers






Get Ezekiel Chew’s 5 Day Email Course on “How to be in the Top 10% league of Forex Traders”

100% Free – Delivered to your inbox

Subscribe to the most popular Forex Trading  blog online, join thousands of readers






I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!

I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!


Scroll to top

I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!