Using Stop Pending Order
In forex trading there are many terms that will be foreign to ordinary people. Some of them are buy stop, sell stop, buy limit, and sell limit. These four terms are closely related to pending orders that are applied to trading platforms, such as metatrader4, if the trader does not want the order to be executed at the current price.
A pending order is an order that will be executed when the price touches a predetermined point. Or place an order to open a position at a certain price level.
A stop order is an order that is used to buy a pair starting from a currency, gold or index that is above or below the current price (current price or running price). This order can be a buy order or a sell order.
With a stop order, a trader does not always have to actively monitor price movements because the stop order will function automatically according to the desired price limit. In situations of very fast price fluctuations, the executed stop order (become a market order) may be obtained differently from the stop price.
Stop orders are widely used by traders to open orders after the running price has passed a certain price level. Stop orders are mostly used to enter or exit the market at a better price. Stop orders are also used to limit losses so as not to experience excessive losses.
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