What is a Buy Stop Order?
Buy Stop
Forex Trading Glossary
Quick Answer: A buy stop is placed above current price to trade breakouts. It triggers when price breaks resistance with momentum, entering the trade automatically.
What is a Buy Stop Order?
A buy stop order becomes a market order when price rises to your chosen trigger above the current market. It is commonly used to join breakouts.
Using Buy Stops
- Breakout entries: Confirm momentum by buying strength.
- Stop placement: Set protective stops below the breakout level.
- Slippage awareness: Fast markets can cause fills above the trigger.
- Combine with structure: Trigger should align with resistance breaks or pattern confirmation.
Related Terms
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