Types of Pending Orders Stock Indices Trading
- Buy Limit Indices Order Specifies to buy at a level below the current stock market price
- Sell Limit Indices Order Specifies to sell at a level above the current market price
- Buy Stop Stock Order Specifies to buy at a level above the current stock market price.
- Sell Stop Indices Order Specifies to sell at a level below the current stock market price.
Limit Stock Orders & Stop Indices Orders
Indices Pending Orders are orders which are used to open a new trade transaction after the market reaches a price specified by the trader.
Indices Pending Orders are used to buy or sell when the price quote attains a certain price target.
When a specific price level is reached then a indices trading pending trade order is executed.
Indices Pending Orders are used to enter a trade at a specified price level. It's almost impossible to monitor the market every second & this is why a indices pending trading order can be used. If you feel the market may take a certain action, such as break through a particular price level that it has been touching but it has not been able to break this level, then as a trader you would want to use a Indices Pending Order. Once the price quote crosses your specified level, your pending order is executed.
There are 2 types of pending orders - stock indices limit order & indices trading stop order.
These indices pending trading orders are also known as indices entry trade orders.
Limit Stock Order
An order to buy or sell at a specific limit.
An trade pending limit order can be used to buy below the current price quote or sell above the current price quote.
When buying, pending limit order is executed when the price falls to your limit specified price quote region.
When selling, pending limit order is executed when the price rises to your limit specified price quote region.
These Limit Indices Orders are placed by traders when they expect the price to bounce back after reaching the specified price quote level at which the pending limit stock trade order was placed.
- Indices Buy Limit Order Specifies to buy at a particular level below current price
- Indices Sell Limit Order Specifies to sell at a level above the current price
Stop Indices Order
A pending stop order is an order to buy above current stock market price or to sell below current price.
When buying, a pending stop order is executed as the market goes up & hits buy stop price quote region.
When selling, a pending stop order is executed as the stock market price goes down & hits the sell stop specified price quote region.
- Indices Buy Stop Trading Order Specifies to buy at a level above the current price.
- Indices Sell Stop Trading Order Specifies to sell at a level below the current price.
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
