How to Place a Pending Stock Indices Order in MetaTrader 4
There are different types of stock indices orders which a stock indices trader can use to trade in Stock Indices.
At the foundation of successful stock indices is making use of the correct stock indices order for its correct purpose. The most important things to remember about is this: Always understand the stock indices orders you place. Never place a stock indices order which you are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of stock indices orders:
Types of Stock Index Market Orders and Stock Indices Pending Orders
Market Order
This is the most basic type of stock indices order, market order is used to buy or sell at the current ask or bid stock indices quote stock index price. This refers to the quoted stock index price that appears on your stock indices platform.
This type of stock indices order is used for buying or selling according to the present exchange rate quotation in Stock Indices, the execution is instant. The minute you want to enter a position you can buy and sell the stock index at a click of a button using a stock indices market order.
Entry Stock Indices Orders
These are stock indices orders used to open a new trade position after the stock indices market reaches a stock indices price specified by the stock indices trader.
Entry orders are used to buy or sell a stock indices instrument when it attains a certain stock index price target.
When a specific stock index price level is reached or broken then a stock indices entry order is executed.
These Entry Stock Indices Orders are used to enter a stock indices trade at a specified stock index price level. It is almost impossible to monitor the stock indices market every second and this is why an entry order can be handy. If you feel the stock indices market may take a certain action, such as break through a particular stock index price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Stock Index Order. Once the stock indices market crosses your specified level, your entry limit stock indices trade order is executed.
There are two different types of entry orders - limit stock indices order and stop entry order.
These entry orders are also known as pending stock indices orders.
Entry Limit Stock Indices Order
An order to buy or sell at a certain limit.
An entry limit stock indices order can be used to buy below the current stock index price or sell above the current stock index price.
When buying, entry limit is executed when the stock index price falls to your limit level.
When selling, entry limit is executed when the stock index price rises to your limit level.
These Entry Limit Stock Indices Orders are placed by stock indices traders when they expect the stock indices market to bounce back after reaching the stock index price level at which the entry limit was placed.
- Buy Limit Stock Indices OrderSpecifies to buy at a level below the current market indices price
- Sell Limit Stock Indices OrderSpecifies to sell at a level above the current market indices price
Entry Stop Stock Indices Order
An entry stop order to buy above the current stock index price or to sell below the current stock index price.
When buying, entry stop order is executed as the stock indices market goes up and hits the buy stop level.
When selling, entry stop order is executed as the stock indices market goes down and hits the sell stop level.
- Buy Stop Stock Indices OrderSpecifies to buy at a level above the current market stock index price.
- Sell Stop Stock Indices OrderSpecifies to sell at a level below the current market stock index price.
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