What is Buy Stop order?
A buy stop market order is typically used to limit a loss on a short sale.A buy stop price is always above the current market price. For example, if a trader sells a currency pair short hoping the currency pair price goes down in order to book profits at a lower price, the trader may use a buy stop order to protect himself against losses if the price goes too high.
In other words,an order to buy a currency pair which is entered at a price above the current offering price. It is triggered when the market price touches or goes through the buy stop price.
People using a buy stop hope to gain if momentum gains on a particular currency pair. If the price exceeds the price you have set, it will automatically trigger a market order.
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