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Entry Stock Index Order in Stock Indices Trading and Limit Stock Index Order in Stock Indices

Limit order definition - Entry limit is an order to buy or sell a Stock Indices Trading at a certain stock index price which is a retracement level where stock index price is predicted to pullback to before resuming the original Indices trend. Stock Indices traders use them to buy or sell at better market stock index price. These types of orders are available in most online trading platforms, for our example we will use the MetaTrader 4 stock index platform.


An entry of this type can be used to buy below the stock indices market level (up stock indices trend market retracement) or sell above the stock indices market level (down stock indices trend stock index trading market retracement).


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


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


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


  • Entry Buy Limit Stock Indices Order
    buy at a level below the current market price.


  • Entry Sell Limit Stock Indices Order
    sell at a level above the current market price.


Buy Entry Limit Example

In the stock indices example illustrated below, the buy limit stock indices order was placed to buy at a stock indices price below the current market stock index price. Point B is the point at which it was set.

Limit Buy Order Entry Placed to Buy Below the Current Market Indices Price

Limit buy order entry placed to buy below the current market indices price



The stock index price then retraced and went down to hit the buy entry limit, and afterwards stock index price continued to move upwards in the direction of the original Stock Indices Trading upward stock index trend. When the limit buy order was hit it changed to a buy.

Indices Price Hits Buy Limit Stock Indices Order, Order Now Changes to a Buy

Indices Price hits buy limit, order now changes to a buy



Sell Entry Limit Stock Indices Order

In the stock indices example illustrated below a the sell entry limit was placed to sell at a stock indices price above the current market stock index price. This is the level for the stock index price retracement.

entry limit sell order placed to sell above the current market indices price

Entry limit sell order placed to sell above the current market indices price



The stock index price then rallied, went up to hit the sell entry limit, and afterwards stock index price continued to move downwards in the direction of the original Stock Indices Trading downward trend.

Indices Price Hits Sell Limit Stock Indices Order, Order Now Changes to a Sell

Indices Price hits sell limit, order now changes to a sell


When stock indices quote hit the set level the order changed to a sell, this is therefore a nice method to buy or sell at a better stock index price after a retracement.



Setting Buy and Sell Limit Stock Index Orders on MetaTrader 4

To set up these stock index trading orders on the MetaTrader 4 stock index platform, Right click on Stock Indices Trading chart>> Select "Trading">> Then Select "New">> Then on the popup window that appears (shown below), under the label "Type" select the option of "pending" instead of "market execution">> Under the pending stock indices order options select the pending stock indices order type: For This trade select either "Buy Limit Stock Indices Order" or "Sell Limit Stock Indices Order" depending on whether you want to place a pending buy or sell.

Setting Buy and Sell Limit Stock Index Orders on MetaTrader 4

Setting Buy and Sell Limit Stock Index Orders on MetaTrader 4


Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibonacci retracement indicator and use the 38.2 % retracement levels. This retracement level is watched by many stock indices traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fibonacci retracement level.


Fibonacci Retracement Tutorial - Stock Index Fibonacci Retracement Tutorial


Tip: In Indices online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on Stock Index Fibonacci Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.


Stock Indices Fibonacci Expansion Tool Tutorial - Stock Indices Fibonacci Expansion Tool Tutorial


 

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S&P500, Nasdaq100, Dow Jones Industrial Average 30 - DJI30, Nikkei225, BSE SENSEX, MSCI World, Nasdaq Composite, DAX PERFORMANCE-INDEX, FTSE100 Index, Hang Seng Index, KOSPI Composite Index, CAC40, IBOVESPA, Hang Seng H-Financials Index, VIX CBOE Volatility Index, S&P/TSX Composite Index, S&P/TSX Composite Index, SZSE Component Index, FTSE All-World index series, S&P/ASX200, EUROSTOXX50, SSE Composite Index, BEL20, MOEX Index, Straits Times Index, Indice de Precios y Cotizaciones, Russell2000 Index, NYSE Composite, S&P/NZX50 Index, MERVAL, All Ordinaries Index, FTSE Bursa KLCI, TA-125 Index, NYSE Amex Composite Index, EURONEXT100 Index, Swiss Market Index - SMI, IBEX 35, AEX index, Capitalization-weighted index, OMX Stockholm30 - OMXS30, IDX Composite, WIG20, PSE Composite Index, BIST100, FTSE MIB, TA-35 Index, Tadawul All Share Index (TASI)