Stop entry order definition
Stop entry order
Stop-entry orders are used to enter a trade at a specific price. To buy, a stop-entry order is set above the current market price, and to sell, the stop-entry order is set below the current market price. Stop-entry orders are primarily used to enter at the beginning of a trend since they are triggered by the price moving in the direction of your desired trade.
Stop entry order example
For example, you have identified EUR/USD trading within a consolidated range. You expect the currency pair to break out and rise in price, and you’d like to open a long position to trade after the breakout. To do this, you use a stop-entry order several pips above the current level of resistance. When the price breaks past the resistance level, your stop-entry order is triggered, and you’ve opened a buy position to profit on the remainder of the upward trend.