Forex Orders - How to Place a Pending Forex Order in MetaTrader 4 Forex Trading Platform - How to Place a Pending Order In MetaTrader 4 Forex Trading Software
Before a beginner trader can start trading the online forex trading market they should first learn about the various types of forex trading orders that are used in forex trading. A trader should also seek to learn how each of these orders are set when trading the forex market.
There are various forex order types used in forex trading. There are Market Execution Orders used by traders to open new trades and there are Pending Orders that are used to open pending market orders that are executed when the price reaches a predetermined price level either above the current market price or below the current market price.
There are different types of forex orders which a forex trader can use to trade in Forex and at the foundation of successful forex trading is making use of the correct forex trading order for its correct purpose. The most important things to remember about is this: Always understand the forex orders you place. Never place a forex order which you are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of forex trading orders:
Types of Forex Market Orders and Forex Pending Orders
This is the most basic type of forex order, market order is used to buy or sell at the current ask or bid quote price. This refers to the quoted price that appears on your forex trading platform.
This type of forex trading order is used for buying or selling according to the present exchange rate quotation in Forex, the execution is instant. The minute you want to enter a position you can buy and sell the currency at a click of a button using a forex market order.
These are forex trading orders used to open a new trade position after the market reaches a price specified by the forex trader.
Entry orders are used to buy or sell a forex currency pair when it attains a certain price target.
When a specific price level is reached or broken then a forex entry order is executed.
These Entry Orders are used to enter a forex trade at a specified price level. It is almost impossible to monitor the forex market every second and this is why an entry order can be handy. 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. Once the market crosses your specified level, your entry limit trade order is executed.
There are two types of entry orders - limit order and stop entry order.
These entry orders are also known as pending orders.
Entry Limit Order
An order to buy or sell at a certain limit.
An entry limit order can be used to buy below the current price or sell above the current price.
When buying, entry limit is executed when the forex price falls to your limit level.
When selling, entry limit is executed when the forex price rises to your limit level.
These Entry Limit Orders are placed by forex traders when they expect the market to bounce back after reaching the price level at which the entry limit was placed.
- Buy Limit Order
Specifies to buy at a level below the current market price
- Sell Limit Order
Specifies to sell at a level above the current market price
Entry Stop Order
An entry stop order to buy above the current price or to sell below the current price.
When buying, entry stop order is executed as the market goes up and hits the buy stop level.
When selling, entry stop order is executed as the market goes down and hits the sell stop level.
- Buy Stop Order
Specifies to buy at a level above the current market price.
- Sell Stop Order
Specifies to sell at a level below the current market price.