When trading the financial markets, traders place pending orders to buy a financial instrument in the future when a specific condition is met.
This action is also known as Buy-Stop.

So, in simple words, Buy-Stop is a pending order that is placed when the trader wants to buy a financial instrument at a specific price.
But how does it work exactly?

Well, let’s say that after analyzing the price chart, you notice a setup where if the price reaches or exceeds a predefined price level, it would potentially open the way for an upward move.
So, it makes good sense to place a Buy-Stop pending order to buy when the price rises to a specific price so they can benefit from the rally.

For example, say that the EURUSD is trading at the exchange rate of 1.2200.
In anticipation of a potential breakout above 1.2250, some technical traders would place a Buy-Stop pending order at 1.2250 to enter the market with a buy trade and take advantage of the upswing.
Therefore, Buy-Stop pending orders allow traders to set the conditions for trades to be executed in the future at a higher price without being in front of the screen monitoring the price fluctuations. This not only gives flexibility to the user but also promotes discipline.

Remember that buy orders are always executed at the Ask price.
MT4 and MT5 trading platforms provide Buy-Stop pending orders.
Happy trading!