Know how to Stop Order

Stop Entry Order
Forex stop entry orders rely on rationale that is the opposite of limit entry orders.
They involve either:

• Placing orders to buy above the current market rate
• Placing orders to sell below the current market rate

While limit entry orders can be used if a trader is expecting a reversal, stop entry order should be used if the trader is expecting continuation of a trend beyond a certain point. As a result, stop entry order are often safer. They allow a trader to enter positions only after market has reached a certain rate and confirmed the strength of the trend.

For better understand consider an example