OTO allows the trader to place two orders simultaneously, the second one being activated after the first one. When the market reaches 1.1880, you will buy EUR/USD at this level, and the order placed at 1.1820 will be deleted from the trading platform. In this case you place an OCO Forex order at the level of 1.1880 (above the market price) in anticipation of an upside move and at the level of 1.1820 (below the market price) in case the price goes down. You expect great volatility in the market and you do not want to miss the movement. When one of the orders is reached, it is executed and the other one is automatically deleted from the trading platform.įor example, EUR/USD is currently trading at 1.1850. One order is placed above the current market price and the other below the current market price. The OCO order is a combination of two orders to enter into a trade. Sell Stop - pending sale order placed at a price higher than the current one.Sell Limit - pending sell order placed at a price higher than the current one.Buy Stop - pending buy order placed at a price higher than the current one.Buy Limit - pending buy order placed at a price lower than the current one.However, if you think that the price will fall in the following periods and then rise, instead of you sitting at the computer and wait for a convenient time to buy, you can place an order to buy a limit below the current market price - on chart 1,1760.Ībove is a summary chart of the orders and where they are placed. To place a Sell Limit order at the 1,1960 level. To sit in front of the screen waiting for price to reach 1,1960 so you can sell, or Sell Limit order is used when you want to sell at a level higher than the current market price.įor example, EUR/USD is currently trading at a price of 1.1860, you think that if it reaches a price of 1.1960 it will bounce off the level and go into a downtrend. Limit Forex orders / Buy limit and Sell Limitīuy Limit order is used when you want to buy at a level lower than the current market price. However, if you think that the price will fall in the coming periods, instead of staying at the computer and wait for a convenient time to sell, you can place a Sell Stop order at a level lower than the current market price - on the chart 1.1760. To place a Buy Stop order at the 1,1960 level. To sit in front of the screen waiting for price to reach 1,1960 so you can buy, or It is set lower than the current price level.įor example, EUR/USD is currently trading at a price of 1.1860, you think that if it reaches a price of 1.1960 it will continue to move in an uptrend. Sell Stop order is used when you want to sell at a level lower than the current market price. It is placed higher than the level at which the price is currently. The Stop orders to enter a deal are different from the Stop Loss order to limit the loss!īuy Stop order is used when you want to buy at a level higher than the current market price. Stop Forex orders - Buy Stop and Sell Stop Keep in mind that depending on market conditions, there may be some difference between the price you see and the price at which the order will be executed. When you click on the "Sell" or "Buy" button, you actually place a market order. This is an order where you enter a trade, regardless of buy or sell, which is executed at the current best price.įor example, if you want to buy GBP/USD, you click directly on the corresponding button and the trading platform automatically places the deal on the market. Limit orders cannot be activated at a price lower than the set price, the price must be either equal to the set price or even more advantageous.ĭepending on the purposes of the trade, different deferred orders are used.Ī breakout of a level is traded with a Stop orderĪ pullback from a level is traded with Limit order. The difference between them is that Stop Orders can be activated at a worse price than the set price, depending on market conditions. The most popular pending orders are Stop and Limit!īoth types of orders become market orders when the initially set price is reached. Most often this condition is reaching a certain market price. These are orders that will be filled in the future, once a certain condition is met. Somewhere you can find the term as "Deferred orders".
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