How to Use Limit Orders: Buy Limit Order vs Sell Limit Order - Forex Limit Order Strategy

Limit order definition - Entry limit is an order to buy or sell a Forex currency at a certain price which is a retracement level where price is predicted to pull-back to before resuming the original trend. Traders use limit orders to buy or sell at better market price. Buy Limit Order vs Sell Limit Order - These types of limit orders are available in most online trading softwares, for our example we shall be using the MT4 forex trading platform.

Buy Limit Order vs Sell Limit Order - An entry order of this type can be used to buy below the market level (upward trend retracement) or sell above the market level (downwards trend retracement).

Buy limit - When buying, your entry buy limit is executed when market falls to your set price. (retraces down) - buy limit order below market price

Sell limit - When selling, your entry sell limit is executed when market rises to your set price. (retraces up) - sell limit order above market price

Entry orders are placed by traders when they expect price to bounce back after reaching this level.

• Buy Limit Order buy at a level below the current market level.

• Sell Limit Order sell at a level above the current market level.

Buy Limit Forex Order Example

In the buy limit order example below, the buy limit order was placed to buy at a price below the current forex marketprice. Point B is point at which it was set.

Buy Limit Order Example - How to Use Limit Buy Orders - Limit Order Buy Example

The forex price then retraced and went down to hit the buy limit order, and afterwards the forex price continued to move upward in direction of the original Forex uptrend. When the limit buy order was hit it changed to a buy order - How to Use Limit Buy Orders.

Forex Price Hits Buy Limit, Limit Buy Order Now Changes to a Buy - How to Use Buy Limit Orders

Sell Limit FX Trading Order Example

In the sell limit order example below a the sell limit order was placed to sell at a price above the current forex market price. This is the level for the forex price retracement.

Sell Limit Order Example - How to Use Limit Sell Orders - Limit Order Sell - Forex Limit Order Trading Strategy

The forex price then rallied, went up to hit the sell limit order, and afterwards the forex price continued to move downward in direction of the original forex trading downward trading trend.

Price Hits Sell Limit Order, Sell Limit Order Now Changes to a Sell - How to Use Sell Limit Orders

When the forex price hit the set sell limit order level the order changed to a sell, this is therefore a good method to sell at a better price after a retracement.

Setting Limit Buy Order and Limit Sell Order in MT4 - Buy Limit vs Sell Limit

How to Use Limit Orders - to set up these forex trading limit orders on MT4 platform, Right click on Forex chart>>> Choose 'Trading'>>> Then Choose 'New'>>> Then on the popup panel that appears (shown below), under label 'Type' choose the option of 'pending' instead of 'market execution'>>> Under pending order options choose the pending order type: for This forex trading example select either "Buy Limit" or "Sell Limit" depending on whether you want to place a pending buy limit order or a pending sell limit order.

How to Use Limit Orders - Setting Forex Limit Order Buy and Limit Order Sell on MT4

Sometimes, setting the point value to place your limit order can be calculated using a number of method, setting a limit order too far may mean your entry limit order not getting executed, the best forex trading tool and forex trading technique to use is Fibonacci retracement indicator and use the 38.2 % Fibonacci retracement levels. This fibonacci retracement level is used by many traders and entry limit orders tend to crowd at this Fibonacci retracement level, therefore the best forex strategy to place a forex trade would be to use the 38.2% Fibonacci retracement level. Fibonacci Retacement Tutorial for Setting Forex Limit Orders - Fibonacci Retracement Guide