How to Determine the Right Pending Order Price
A pending order is an order that will be executed when the price touches a predetermined point, or an order to open a position at a certain price level. Prices are set above or below the current price. If the price that the trader ordered has not been reached, then the pending order is still active and will wait until the price that the trader ordered is touched. When the price is reached, it will automatically be bought or sold.
In placing a pending order, traders must pay attention to the applicable rules and how far the points can be placed to order the price so that if the price has touched the price the trader ordered. There are various pending orders, namely buy limit, sell limit, buy stop and sell stop.
Buy Limit
Buy limit is to place a buy order below the current moving price, usually at the nearest support or at strong support price points.
Sell Limit
Sell limit is to order or place a sell position order above the current price movement. Usually placed at the current resistance or strong resistance points. Then the sell limit can also be placed in the high area. Lack of sell limit, of course, if the price rally turns out to be strong. Sell limits can be set at least 10 pips or 100 points from the current price movement.
Buy Stop
Buy stop is to place a buy order at a point above the current moving price. Buy stop is usually indicated when it breaks from a certain resistance. Lack of buy stop, of course, if it turns out that the price retraces back down.
Sell Stop
Sell stop is to place an order at a point below the current price. It is intended that if the price continues to fall, a sell order will automatically open.
This short article, may be useful for all traders. Watch the video below if you don't understand!
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