How Do I Place a Pending Order on MetaTrader 4 Platform
There are different types of stock orders which a trader can use to trade in Indices.
At the foundation of successful indices trading is making use of correct indices order for the 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 are not entirely knowledgeable about. Given below are the 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 software.
This type of stock order is used for buying or selling according to the prevailing exchange rate quotation in Indices Trading, the execution is instant. The minute you want to enter a position you 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 transaction after the stock market reaches a price given by trader.
Entry orders are used to buy/sell indices when it attains a certain price target.
When a specific price level is reached or broken then a entry order is executed.
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 but it has not been able to break, you'd 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 order & stop entry order.
These entry orders are also known as pending stock orders.
Entry Limit Order
An order to buy/sell at a specific limit.
An entry limit order can be used to open buy below the prevailing stock price or sell above the prevailing price.
When buying, entry limit is executed when the stock price falls to your limit area.
When selling, entry limit is executed when the stock price rises to your limit area.
These Entry Limit Orders are placed 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 OrderSpecifies to open buy at a level that is below the prevailing market price
- Sell Limit OrderSpecifies to open sell at a level that is above the prevailing market price
Entry Stop Indices Order
An entry stop order to open buy above prevailing stock price or to open sell below the prevailing price.
When buying, entry stop order 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 at a level that is above the prevailing market price.
- Sell Stop Indices OrderSpecifies to open sell at a level that is below the prevailing market price.
