How to Place a Pending Order on MT4 Platform
There are different types of stock orders which one can use to trade in Indices.
At the foundation of successful indices trading is making use of the correct indices order for its correct purpose. The most important things to remember about is this: Always understand the 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 trading quote indices price. This refers to the quoted price that appears on your indices trading platform.
This type of stock order is used for buying or selling according to the current exchange rate quotation in Indices Trading, the execution is instant. The minute you want to enter a position you can buy and sell indices at a click of a button using a stock market order.
Entry Orders
These are stock orders used to open a new trade transaction after the stock market reaches a indices price specified by the trader.
Entry orders are used to buy or sell indices when it attains a certain price target.
When a specific price level is reached or broken then a indices entry order is executed.
These Entry Orders are used to enter a indices 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 specified level, your entry limit indices trade order is executed.
There are two types of entry orders - limit indices order & 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 indices order can be used to buy below the current stock price or sell above the current indices 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 indices traders when they expect the stock trading market to bounce back after reaching the stock price level at which the entry limit was placed.
- Buy Limit OrderSpecifies to buy at a level below the current market indices price
- Sell Limit OrderSpecifies to sell at a level above the current market indices price
Entry Stop Indices Order
An entry stop order to buy above current stock price or to sell below the current indices price.
When buying, entry stop order is executed as the stock market goes up & 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 Indices OrderSpecifies to buy at a level above the current market indices price.
- Sell Stop Indices OrderSpecifies to sell at a level below the current market indices price.
What's a Stock Index Trading Plan? - Stock Indices Trading Plan Example
Alternatives: Automated EA Trading or Copy and Paste Signals
