How Do You Analyze Market Execution Order vs Pending Order?
How to Analyze Market Execution Order vs Pending Order
There are different types of xauusd orders which a trader can use to xauusd trade in XAUUSD.
The most crucial thing to remember about trading orders is this: Always understand the orders you as a trader place when xauusd. Never place a order which you're not entirely knowledgeable about. Below are the some basic definitions and explanations of the commonly used orders - types of xauusd orders illustrated:
Trading Market Execution Orders & Pending Orders
Market Execution Order
This is the most basic type of xauusd order, Market Execution Order is used to buy or sell at prevailing ask or bid price. This Market Order refers to the quoted price which pops up on your software.
This type of xauusd order - Market Execution Order - is used for buying or selling at the current price quote in XAUUSD, the execution of this order is instant. The min you want to enter a position you can buy and sell xauusd at a click of a button using a xauusd Market Execution Order - also known as a Market Order or Market Instant Execution Order.
Pending Orders
These are orders used to open a new trade position after the market reaches a price given by the trader.
Pending Orders are used to buy or sell xauusd when the price attains a certain price target.
When a specific price level is reached or broken then a trading Pending Order is executed.
These Pending Orders are used to enter a trade at a particular price level. It's almost impossible to monitor the market every second & this is why a Pending Order can be useful when trading gold. If you feel the market may take a certain action, such as break through a particular price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Order - Pending Order. Once the market crosses your given level, your entry limit order is executed.
There are 2 types of Pending Orders - Entry Limit Order and Entry Stop Order.
These Pending Orders also are known as Entry Limit Orders or Entry Stop Orders.
Pending Order
An order to buy or sell at a particular limit.
An Entry Limit Order - Pending Order can be used to buy below the current price or sell above the prevailing price.
When buying, entry limit order is executed when price falls to your limit level price.
When selling, entry limit order is executed when the price rises to your limit level price.
These Entry Limit Order - Pending Orders are placed by traders when they expect the market to bounce back after reaching to the price level that the entry limit order was set.
- Buy Limit Order - Pending OrderSpecifies to open buy at a level that is below the prevailing market price
- Sell Limit Order - Pending OrderSpecifies to open sell at a level that is above the prevailing market price
Trading Set Buy Stop Order and Sell Stop Orders on MT4 - Place a Pending Order on MT4
Entry Stop Order
An entry stop order is an order to open buy above prevailing price or to open sell below the prevailing price.
When buying, entry stop order pending order is executed as the market goes upward and hits buy stop level.
When selling, entry stop order pending order is executed as the market moves down & hits the sell stop level.
- Buy Stop Order - Pending OrderSpecifies to open buy at a level that is above the prevailing market price.
- Sell Stop Order - Pending OrderSpecifies to sell at a level below the prevailing market price.
Trading Set Buy Stop Order and Sell Stop Orders on MT4 - Place Pending Orders on MT4
Read Market Execution Order vs Pending Order
