For a sell order, you only use stop or stoplimit when the market is above the trigger price (ie the AuxPrice). When the price drops to the trigger price, either a market or a limit order is then entered into the exchange. So you can use this to exit from a long position (this is typically a stop-loss, but it can alternatively be a profit taker if the position is currently in profit).

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You can use a buy stop or stoplimit to enter a new position, in which case market price must be below the trigger price.

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Be careful not to confuse a stop or stoplimit ?order with a ‘stop-loss’ order: stop and stoplimit orders are specific types of order, whereas a stop-loss order is really a mode of operating that protects a position against excessive loss, and can be of several different types.

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Note also that a market- or limit--if-touched order can also be used either to enter or exit a position, but you wouldn’t use it as a stop-loss. I’ll leave you to think about why that is. You need to make sure you have a clear understanding of these different order types.

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But here’s an example: suppose the market is trading in a range, and you want to catch a breakout from that range in either direction: you could use a sell stop with trigger 1-tick below the bottom of the range, and a buy stop with trigger 1-tick above the high of the range. And you would put both orders in an OCA group so if one order fills, the other is cancelled.

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