How Do I Analyze Difference between Sell Limit Order and Buy Limit Order?
Difference between Sell Limit Order and Buy Limit Order
A sell limit order is an order used to sell instrument at better price after price has retraced upwards from its current level.
A sell limit pending order is an order to sell after the market retraces up-ward within a downwards trend.
A sell limit order is only executed when forex instrument prices moves upward & retraces to the set sell limit pending order level.
What is a Sell Limit Order Example?
Sell Limit Order order definition - Entry sell limit order is an order to sell a instrument at a certain price which is a pull back area where price is predicted to pull-back to before it resumes the original trend.
Forex traders use sell limit orders to sell at better market price. These types of sell limit orders are available in most of online trading platforms, for our example we shall be using the MetaTrader 4 software platform.
An entry sell limit order of this type can be used to sell above market level (retracement pull back in a down-ward trend market).
Sell limit - When selling, your entry sell limit order is executed when market rises to your set price. ( retraces upward )
Entry orders are placed by traders when they expect price to pull back downward after reaching this level.
- Entry Sell Limit Ordersell at a level above the current market level.
What is a Sell Limit Order Example?
In the trading example below a the sell limit order was set to sell at a price above the prevailing market price. This is the level for the price pullback.
Sell Limit Order Placed to Sell above Current Price
The instrument then rallied, headed upwards to hit sell entry limit order, & afterwards price continued to move downwards in direction of the original downward trend.
Forex Price Hits Sell Limit Order
When forex instrument price got to the set sell limit order level the sell limit order changed in to a sell order, this is therefore a good method to sell at better price after a pull back.
What is Buy Limit Order?
A buy limit order is an order used to buy instrument at better price after price has retraced from its current area.
A buy limit pending order is an order to buy at a lower price than the prevailing price
A buy limit order is only executed when forex instrument prices falls & retraces to the set buy limit order region.
What is Buy Limit Order Example?
Buy Limit Order order definition - Entry limit is an order to buy a instrument at a certain price which is a pull back area where price is predicted to pull-back to before it resumes the original trend.
FX traders use buy limit orders to buy at better market price. These types of buy limit orders are available in most of online trading platforms, for our example we shall be using the MT4 platform.
An entry buy limit order of this type can be used to buy below market level (retracement in an upward trend market).
Buy limit - When buying, your entry buy limit order is executed when market falls to your set price. (pulls back downwards)
Entry orders are placed by traders when they expect price to bounce back after reaching to this zone.
- Entry Buy Limitbuy at a level below the current market level.
What is Buy Limit Order Example?
In the trading example below, the buy limit order was set to open buy at price below the prevailing market price. Point B is point that it was set.
Buy Limit Order Placed to Buy Below Current Price
The instrument then retraced and went down to hit buy entry limit order, and afterwards price continued to move upwards in direction of the original upward trend. When the limit buy order was hit by price it changed to a buy order.
Forex Price Hits Buy Limit Order
How Do I Interpret Difference between Sell Limit Order and Buy Limit Order?
