Orders - How to Place a Pending Order in MetaTrader 4 - How to Place a Pending Order in MetaTrader 4
Before a beginner trader can start trading the online forex market they should first learn about the various types of orders that are used in forex trading. A trader should also seek to learn how each of these orders are set when trading the market.
The different 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 various types of orders which one can use to trade in Forex and at the foundation of successful forex trading is making use of the correct trade order for its correct purpose. The most important things to remember about is this: Always understand forex orders you place. Never place a order which as a trader you are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of orders:
Types of Market Orders and Trade Pending Orders
Market Order
This is the most basic type of order, market order is used to buy or sell at current request quote or bid quote price. This refers to the quoted price which appears in your software.
This type of order is used for buying or selling according to present exchange rate quotation in Forex, the execution is instant. The min you want to enter a position you can buy & sell the currency at a click of a button using a market order.
Entry Orders
These are forex orders used to open a new trade position after the market reaches a price specified by trader.
Entry orders are used to buy/sell a forex currency pair when it attains a certain price target.
When a particular price level is reached or broken then a entry order is executed.
These Entry Orders are used to enter a trade at a predetermined price level. It's almost impossible to monitor the market every second and this is why an entry order can be handy. If you feel the market might take a certain action, such as break out through a specific price level that it has been touching but it hasn't been able to break, you would want to use an Entry Limit Order. Once the market crosses your given level, your entry limit trade order is executed.
There are 2 types of entry orders - limit order & stop entry order.
The entry orders also are referred to as pending orders.
Entry Limit Order
An order to buy/sell at a particular limit.
An entry limit order can be used to open buy below the ruling price or sell above the ruling price.
When buying, entry limit is executed when price falls to your limit region.
When selling, entry limit is executed when price rises to your limit level.
The Entry Limit Orders are set by online traders when they expect the market to bounce back after reaching the price level that the entry limit was placed.
- Buy Limit OrderSpecifies to open buy at a level which is below the ruling market price
- Sell Limit OrderSpecifies to open sell at a level which is above the ruling market price
How to Set Buy & Sell Stop Trades on MetaTrader 4 - How to Add a Pending Order in MT4
Entry Stop Order
An entry stop order to open buy above ruling price or to open sell below the ruling price.
When buying, entry stop order is executed as the market goes up and hits buy stop level.
When selling, entry stop order is executed as the market moves down & hits the sell stop level.
- Buy Stop OrderSpecifies to buy at a specified level above current market price.
- Sell Stop OrderSpecifies to sell at a specified level below current market price.
How to Set Buy & Sell Stop Trades on MetaTrader 4 - How to Add a Pending Order in MT4
