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