Buy limit vs buy stop on forex meta trader 4 | this is one of the confused part for newbie forex traders around the world when and where these two options need to implemented.
According to latest survey in forex meta trader 4 automation doing better work than the humans, instant execution is done by machines very well, in this case buy limit in meta trader 4 can be used when you think while the market is moving down and will go up after some time you can execute the buy limit.
If you are trading in eur/usd and the position is in 1.2390 and going down you can use buy limit while you think it will go up by making a pending execution like buy limit @ 1.2395 after the position hits that market execution will take place if your strategy is right it will goes up until you set a profit.
Buy stop is different from above you have to set in particular price on which you think the market will go up once you reach that, it will start to calculate once the ask price touches that buy stop position you have been set.
In the initial stage of trading you need to understand fully about the meta trader it is recommended with demo account if you are not clear with this buy stop and buy limit, don’t try this with your live account or try with little amount as 0.01.
Both method is useful if you are going away from pc screen and you want to trade in forex.