What is buy stop, sell stop, buy limit and sell limit

This is a question that people ask, but they don't use it in their tradings, mostly people use only buy limits and sell limits, but it is very important to know about buy stop and sell stop, there is a little difference between these two options, but when you are trading in market then you will find them very much useful. Let me explain in my simple words, hope that it will be useful for you.

When you open order you can find pending order, in pending order, you can see these options in "type" box, first option will be buy limit, second sell limit, third buy stop and forth will be sell stop. 

The simple definition of buy limit is, you want to open order when the market is up and expected to fall and bounce back, so you place buy limit below the current market price, similarly, you set sell limit above the current market price. While you use buy stop when market is moving up and you want to open order on rising market. Similarly, sell stop is used to place pending order when market is falling and you want to place pending sell order. 

Let see it in simple example, if the market of eur/usd is on 1.3074 and you think that market will move up, so you can open order by instant execution or just use buy stop but remember you can set buy stop after the spread quantity pips, as you can see the last sentence in the picture above. You can not set buy limit above the current market. The difference between limit and stop is just above the current price and below the current price. The option buy stop and sell stop are useful when you see an economical news is expected and market may bounce face, then you may use buy / sell stop to get benefits from that bounce.