A buy stop order is a type of pending order that allows a trader to put instructions in the trading software (MT4), to purchase a security at a specified price. It’s placed above the CMP (current market price) if a trader expects that the price will soar further on the breakage of a certain level.
Vincent Nyagaka is a Professional Trader, Analyst &. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Checkout Vincent’s Professional Trading Course here.