Stop Gold Order & Limit Gold Order
There are different types of xauusd trader orders which a trader can use to trade in XAUUSD.
At the foundation of successful xauusd is making use of the correct xauusd trade order for its correct purpose. The most important things to remember about is xauusd orders: Always understand the xauusd orders you place and never place a xauusd order which as a trader you are not entirely knowledgeable about. Definitions of the commonly used types of gold trading orders:
XAUUSD Trading Market Orders & XAUUSD Pending Orders
XAUUSD Trading Market Order
Market order is the most basic type of xauusd order, market order is used to buy or sell at the current ask or bid quote price. This refers to the quoted gold price which pops up on your gold trading platform.
This type of xauusd order is used for buying or selling according to the current exchange rate quotation in xauusd trading, the execution is instant. The minute you want to enter a xauusd trade position you can buy & sell at the current gold price at a click of a button key using a gold market order.
Pending Gold Orders
These are xauusd orders used to open a new xauusd trade position after the xauusd market reaches a gold price specified by the trader.
Entry orders are used to buy or sell when price when it attains a certain gold price target.
When a specific gold price level is reached or broken then a pending xauusd order is executed.
These Pending XAUUSD Orders are used to enter a xauusd trade at a specified price level. It is almost impossible to monitor the gold market every second and this is why a xauusd order can be used by a xauusd trader. If you feel the gold price may take a certain action, such as break through a particular gold price level that it has been touching but it has not been able to break, you would want to use an Gold Pending Order. Once the xauusd market crosses your specified gold price level, your pending xauusd order trade order will then be executed.
There are two types of xauusd pending gold orders - xauusd limit order & xauusd trading stop order.
XAUUSD Trading Limit Order
An order to buy or sell at a particular limit.
An xauusd trading limit order can be used to buy below the current gold price or sell above the current gold price.
When buying, xauusd trading limit order is executed when the price falls to your limit region.
When selling, xauusd trading limit order is executed when the price rises to your limit region.
These XAUUSD Trading Limit Orders are placed by traders when they expect the xauusd market to bounce back after reaching the retracement gold price level at which the xauusd trading limit order was placed.
Buy Limit XAUUSD Order Specifies to buy at a level below the current gold market price
Sell Limit XAUUSD Order Specifies to sell at a level above the current gold market price
XAUUSD Trading Stop Order
A xauusd trading stop order is a pending xauusd order that is used to buy above the current gold price or to sell below the current gold price.
When buying, xauusd stop order is executed as the gold market goes upwards & hits the buy stop level.
When selling, xauusd stop order is executed as the gold market goes down & hits the sell stop level.
- Buy Stop Gold Order Specifies to buy at a level above the current gold price.
- Sell Stop XAUUSD Order Specifies to sell at a level below the current gold price.
What's the Difference between Stop Gold Orders & Limit XAUUSD Orders in Gold?
How to Differentiate Between Stop Gold Orders & Limit XAUUSD Orders
Stop orders are set to buy above or to sell below the current market gold price
Limit orders are set to buy or sell at a better gold price after a gold price retracement.
It is easier to first of all remember one concept. The easier concept is that of Stop Gold Orders - Stop XAUUSD Orders are set above and below the current market gold price.
To learn how to set up these pending xauusd orders read the articles:
Setting up Buy Limit Gold Order & Sell Limit Gold Order in MT4
Setting up Buy Stop Gold Order & Sell Stop Gold Order in MT4
What is the Difference between Market Order - Stop Gold Order & Limit XAUUSD Order
