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Getting Started with Forex Trading Using Python
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Essentially, a stop order is an order to buy or sell the specified amount of the asset at the specified price or worse.
You may ask at this point: why on Earth would I want to buy or sell at a price worse than I’d like to?
The answer is very simple: both better and worse are just references to where the order price is relative to the current market price.
For example, if the current price of EURUSD is 0.99673 and I send a buy-stop order at 0.9989, then my order will be executed at any price equal to or greater than 0.9989. Similar to limit orders, a stop order will reside in the broker’s order book until the market price touches the order price and then converted into a market order. Note that, unlike limit orders, stop orders are never sent to the order book immediately, even if you trade with an exchange. This is quite natural, in fact: if I send a limit order to the order book, then I improve the liquidity in...