When trading Forex (and stock markets as well) traders use trading systems . One of the key trading systems is the conclusion of market and pending orders. These types of orders simplify the system of trade and commerce can bring to the automatic level, ie, the trader can make deals, you are away from the trading terminal at the time of order execution.
So, let's analyze what features of these warrants.
Market orders - is essentially the order that you choose to sign your broker at a price that is observed at the time. This is a plus and a minus. Plus the fact that the order will be executed immediately. A disadvantage is that, subject to the order may change the price, and the price may slightly differ from the expected payment (ie, "slip").
Pending orders - it orders that you order to your broker to sign at a certain price level with the specified amount of the transaction. This, in principle, a convenient way to trade because they do not have to sit and wait in front of the monitor to achieve the desired level. The price of your choosing, and, depending on the desired result to achieve price.
There are 4 types of orders. This is a Buy Limit, Sell Limit, Buy Stop, Sell Stop.
First you need to clarify that any warrant for the «Buy» opens the price «Ask», and closed at the price of «Bid». And accordingly, the order for «Sell» opens the price «Bid», and closed at the price of «Ask».
Feature of the limit order is an order that can be exercised only at a price that will be included in your order. As long as the price reaches a specified level you in the order, a limit order will not be executed.
Buy Limit - an order, which you open and which will be executed at a price equal prices «Ask». Current price usually is higher than the set value. This order is to extract greater profits at higher prices. For example, say that the current price is conditional is 10. When you open the order, you ask Buy Limit is 8. Price begins to fall, reaching prices 8, automatically open a position. Price starts to rise, and you make more money than if it opened at 10.
Sell Limit - is to be executed at a price equal prices «Bid». Current price - below the target. This order is to extract more profits with a slump in prices. Let's take the same example. Current price is conventionally 8. When you open the order, you specify Sell Limit is 10. The price starts to rise, reaching a price of 10, the position is automatically opened. Further price falls, and your profit is greater than if opened at 8.
In addition to the limit orders, and stop there. Feature of stop orders is that in the case of passing a given price level, it automatically becomes a market price, and only then executed the warrant. A market order, as stated above, is a "slip."
Buy Stop - an order, which you open and which will be executed at a price equal prices «Ask». Current price - less than this. This order, as a rule, is for profit at a time when you are away from the trading platform. This order should be opened in predicting what will the price increase. For example, say that the current price is conditional is 10. When you open the order, you ask Buy Limit is 12. Price starts to rise, and prices reaching 12, the position is automatically opened. Price starts to rise and you will make a profit.
Sell Stop - an order, which you open and which will be executed at a price equal prices «Bid». Current price - above the target. This order, as well as the «Buy Stop», is for profit at a time when you are away from the trading platform. This order should be opened in predicting what will fall trend. For example, say that the current price is conditional is 10. When you open the order, you ask Buy Limit is 8. Price begins to fall, reaching a price of 8, the position is automatically opened. Price begins to fall, and you start to make a profit.
There are also types of market orders, called «Stop Loss» and «Take Profit».
Take Profit - an order, you order the broker to close an open position when the price level projected by you. Such orders are used to fix the profit on the position. For example, you open position on the «Buy» with the current price 10. You can see that there is a bullish trend , and want to take profits when the price equal to 18. You set the price of Take Profit 18. And when the price is 18, your position is automatically closed with profit. When selling, respectively, on the contrary. When opening a deal on the «Buy», the position is closed at the price of «Bid», in «Sell» - the price «Ask».
Stop Loss - an order that is executed by the broker for closing the open position when the price you specify. This is done to minimize losses when the price moves in the opposite direction from the direction that you predicted. For example, the current price of 10. You expect the price increase and are opening «Buy». But just in case put Stop Loss is 6 and Take Profit at 18. And go about his business. At this point, the market price falls to 2-standard units. But since you put Stop Loss, Your position was closed at 6. As it is done in the psychological order, the trader does not become compulsive, and waited until the price goes up. When opening a deal on the «Buy», the position is closed at the price of «Bid», in «Sell» - the price «Ask».
There is still a Trailing Stop. This tool is used to automatically move the Stop Loss order following the price.
If correct combination of these types of orders with each other and with other tools of the trade, you can develop a profitable trading strategy, and use lokiruyuschie techniques , so-called "castle".
So, let's analyze what features of these warrants.
Market orders - is essentially the order that you choose to sign your broker at a price that is observed at the time. This is a plus and a minus. Plus the fact that the order will be executed immediately. A disadvantage is that, subject to the order may change the price, and the price may slightly differ from the expected payment (ie, "slip").
Pending orders - it orders that you order to your broker to sign at a certain price level with the specified amount of the transaction. This, in principle, a convenient way to trade because they do not have to sit and wait in front of the monitor to achieve the desired level. The price of your choosing, and, depending on the desired result to achieve price.
There are 4 types of orders. This is a Buy Limit, Sell Limit, Buy Stop, Sell Stop.
First you need to clarify that any warrant for the «Buy» opens the price «Ask», and closed at the price of «Bid». And accordingly, the order for «Sell» opens the price «Bid», and closed at the price of «Ask».
Feature of the limit order is an order that can be exercised only at a price that will be included in your order. As long as the price reaches a specified level you in the order, a limit order will not be executed.
Buy Limit - an order, which you open and which will be executed at a price equal prices «Ask». Current price usually is higher than the set value. This order is to extract greater profits at higher prices. For example, say that the current price is conditional is 10. When you open the order, you ask Buy Limit is 8. Price begins to fall, reaching prices 8, automatically open a position. Price starts to rise, and you make more money than if it opened at 10.
Sell Limit - is to be executed at a price equal prices «Bid». Current price - below the target. This order is to extract more profits with a slump in prices. Let's take the same example. Current price is conventionally 8. When you open the order, you specify Sell Limit is 10. The price starts to rise, reaching a price of 10, the position is automatically opened. Further price falls, and your profit is greater than if opened at 8.
In addition to the limit orders, and stop there. Feature of stop orders is that in the case of passing a given price level, it automatically becomes a market price, and only then executed the warrant. A market order, as stated above, is a "slip."
Buy Stop - an order, which you open and which will be executed at a price equal prices «Ask». Current price - less than this. This order, as a rule, is for profit at a time when you are away from the trading platform. This order should be opened in predicting what will the price increase. For example, say that the current price is conditional is 10. When you open the order, you ask Buy Limit is 12. Price starts to rise, and prices reaching 12, the position is automatically opened. Price starts to rise and you will make a profit.
Sell Stop - an order, which you open and which will be executed at a price equal prices «Bid». Current price - above the target. This order, as well as the «Buy Stop», is for profit at a time when you are away from the trading platform. This order should be opened in predicting what will fall trend. For example, say that the current price is conditional is 10. When you open the order, you ask Buy Limit is 8. Price begins to fall, reaching a price of 8, the position is automatically opened. Price begins to fall, and you start to make a profit.
There are also types of market orders, called «Stop Loss» and «Take Profit».
Take Profit - an order, you order the broker to close an open position when the price level projected by you. Such orders are used to fix the profit on the position. For example, you open position on the «Buy» with the current price 10. You can see that there is a bullish trend , and want to take profits when the price equal to 18. You set the price of Take Profit 18. And when the price is 18, your position is automatically closed with profit. When selling, respectively, on the contrary. When opening a deal on the «Buy», the position is closed at the price of «Bid», in «Sell» - the price «Ask».
Stop Loss - an order that is executed by the broker for closing the open position when the price you specify. This is done to minimize losses when the price moves in the opposite direction from the direction that you predicted. For example, the current price of 10. You expect the price increase and are opening «Buy». But just in case put Stop Loss is 6 and Take Profit at 18. And go about his business. At this point, the market price falls to 2-standard units. But since you put Stop Loss, Your position was closed at 6. As it is done in the psychological order, the trader does not become compulsive, and waited until the price goes up. When opening a deal on the «Buy», the position is closed at the price of «Bid», in «Sell» - the price «Ask».
There is still a Trailing Stop. This tool is used to automatically move the Stop Loss order following the price.
If correct combination of these types of orders with each other and with other tools of the trade, you can develop a profitable trading strategy, and use lokiruyuschie techniques , so-called "castle".