Difference between buy/sell stops & buy/sell limits

Are there brokers who allow your Buy limits to get filled at the bid and vice versa for Sell limits at the ask ?
Thanks.

For a moment FORGET "Sell" & "Buy". Think of only "Stop" & "Limit".

Just note that a STOP order is a "continuation" trade. In other words, the trader is expecting that when the price of the underlying asset gets to that price of the order, the underlying asset will continue to move in the direction that it has been traveling.

Now, a LIMIT order is a "reversal" or "pull back" trade. In other words, the trader is expecting that when the price of the underlying asset gets to the price of the order, the underlying asset will turn around and being moving in the opposite direction that is has been traveling.

So,
When you believe the underlying asset that has been going up will continue to move upward past the order price - place a Buy Stop (long trade)
When you believe the underlying asset that has been going down will continue to move downward past the order price - place a Sell Stop (short trade)

When you believe the underlying asset that has been going up will reverse and move lower than the order price - place a Sell Limit (short trade)
When you believe the underlying asset that has been going down will reverse and come back up higher than the order price - place a Buy Limit (long trade)

Good day,l am new to the forex trading and it seems interesting. I have read a couple of posts in the forum regarding buy limit/sell limit/buy stop/sell limit-to me as a beginner it's so confusing, can someone explain these terms to me in lay man terms.I have started training with a Demo account and so far l am coping. Will appreciate if someone can shed some light with the meaning of those terminology

Thanks

K

@Kippie it has been explained great from the others just read the previous page. It sounds a bit complicated at first for everyone but don’t worry its easy once you get it.
@metta87 I doubt that there are such brokers
Cheers

Nice to see, you already got your answer! By the way, right now I willingly use pending orders in my trading! Because it helps me to get extra pips in my trading!

Folks I am trying to trade in forex, and although I have seen a big effort to help our friend, as I am also a rookie and trying to understand these concepts, let me tell you why I did not get it.

Let's take an example of the base price being 1.400

A BUY LIMIT makes sense to me because:
The price is dropping and I expect it will raise, therefore and I say to the market:
If the price drops to 1.350, BUY at that point and TAKE PROFIT at, say, 1.490
I take then a profit!

A BUY STOP makes sense to me because:
The price is raising and I expect it to keep raising, therefore and I say to the market:
If the price raises to 1.450, BUY at that point and TAKE PROFIT at, say, 1.500
I take then a profit!

Now, a SELL LIMIT does not makes sense to me because:
The price is raising and I expect it will drop, therefore I say to the market:
If the price raises to 1.450, BUY at that point and TAKE PROFIT at what? 1.350???
Where is the profit?

A SELL STOP does not makes sense to me because:
The price is dropping and I expect it will keep dropping, and I say to the market:
If the price drops to 1.350, BUY at that point and TAKE PROFIT at what? 1.300???
Where is the profit?

I expect to place SELL orders only when you have bought something, however in the FOREX market you make a trade expecting to buy and sell on the same operation, as I understand it. Therefore, where is the logic of SELL LIMIT and SELL STOP?

Folks, I am sure this is my understanding being wrong, so please can you help me here?

I see, you already got your answer on pending order system! Basically, pending order is useful for the part time traders! But I am a full tine trader and usually I don’t use pending orders in my live trading.

Sell Stop is a placed pending order below current market price.

I am a part-time Forex trader, so I need to use pending order strategy! I basically open my pending order according to my analysis! I seem, pending order strategy is the very much useful facility for the part-time Forex traders!

Thanks guys, this write up are helpful, it has cleared my misconception.

I see, you have already got your answer! Frankly, I was also in a same confusion in my early stage between the sell stop and sell limit!

Can someone explain to me if you think a price will continue going down, why would you do a sell stop? Can't you place a sell limit order or a market order for the current market price? Although it isn't FOREX, but with stocks when there's a Sell Stop price like in a Market Edge report, what exactly does that mean?

Hi Everyone, Is there anyone aware of EA that do this function Buy Limit, Sell Limit, Buy Stop, Sell Stop with all the MM features etc. Thanks you.

Only mark the buy limit & sell limit or manually open trade according to the good points of trading?

Slippage is the main problem for limit order. Sometime broker cannot execute limit order perfectly.