A buy/sell limit order is an instruction to deal if the price moves to a more favorable level than where it’s in the market now.
That’s why these orders are sometimes called improvement orders.
A limit order is a request to buy at a price lower than the current price or request to sell at a price higher than the current price.
If the current offer in GBPUSD is 1.61086, you might leave a limit order to buy at 1.61070.
If the current bid in GBPUSD is 1.61086, you might leave a limit order to sell at 1.61099.
A buy/sell stop order is an instruction to deal if the price moves to a less favorable level than where it’s in the market now (remember: it’s less favorable to buy at higher prices and to sell at lower prices).
A stop order is a request to buy at a price higher than the current price or a request to sell at a price lower than the current price.
If the current price of spot EURUSD is 1.38985, you might leave a stop order to buy at 1.38998.
If the current price of spot EURUSD is 1.38985, you might leave a stop order to sell at 1.38975.
