Types of Indices Orders
Types of Stock Indices Market Orders Indices Trading and Types of Pending Orders Indices Trading
Different types of indices orders which a indices trader can use to trade indices - The Different Types of Indices Orders are:
Types of Stock Indices Market Orders
Stock Indices Market Order
Market Order is the most basic type of indices order, market order is used to buy or sell at the current ask or bid indices quote indices price. This refers to the quoted stock indices price that appears on your indices trading platform.
Market Order type of stock indices order is used for buying or selling according to the present exchange rate quote - the execution of market order is instant. The minute you want to enter a indices trade position you can buy and sell at a click of a button using a indices market order.
Types of Indices Pending Trading Orders
Limit Indices Orders and Stop Indices Orders
Pending Indices Orders are indices orders that are used to open a new indices trade position after the stock indices trading market reaches a indices price specified by the indices trader.
Pending Indices Orders are used to buy or sell when the stock indices price quote attains a certain stock indices price target.
When a specific stock indices price level is reached then a indices pending trading order is executed.
Indices Pending Trading Orders are used to enter a indices trade at a specified stock indices price level. It is almost impossible to monitor the indices market every second and this is why a indices pending trading order can be used. If you feel the indices market may take a certain action, such as break through a particular stock indices price level that it has been touching but it has not been able to break this level, then as a indices trader you would want to use a Indices Pending Trading Order. Once the stock indices price quote crosses your specified level, your pending stock indices order is executed.
There are two types of pending indices orders - limit indices order and stop order.
These pending stock indices orders are also known as entry orders.
Limit Indices Order
An order to buy or sell at a certain limit.
An entry limit indices order can be used to buy below the current stock indices price quote or sell above the current stock indices price quote.
When buying, entry limit stock indices order is executed when the stock indices price falls to your limit stock indices price quote level.
When selling, entry limit stock indices order is executed when the stock indices price rises to your limit stock indices price quote level.
These Entry Limit Indices Orders are placed by indices traders when they expect the stock indices price to bounce back after reaching the stock indices price quote level at which the entry limit stock indices order was placed.
- Buy Limit Indices Order Specifies to buy at a level below the current stock indices market price
- Sell Limit Indices Order Specifies to sell at a level above the current market indices price
Entry Stop Indices Order
An entry stop order is an order to buy above the current stock indices price or to sell below the current indices price.
When buying, entry stop indices order is executed as the indices market goes up and hits the buy stop stock indices price quote level.
When selling, entry stop indices order is executed as the stock indices trading market goes down and hits the sell stop stock indices price quote level.
- Buy Stop Indices Order Specifies to buy at a level above the current stock indices market price.
- Sell Stop Indices Order Specifies to sell at a level below the current stock indices market price.
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