Order by limit (limit buy order).
Exposing the trading terminal traders new pending order to buy before you always question what type of order should I choose? – buy stop or limit buy.
Order by limit (limit buy order) – makes it possible to purchase the currency below current level of prices on Forex, ie nomination of the order at first glance does not look logical, but this action involves the use of special trade strategy which we will discuss below.
In order to place a pending order buy limit should make a few simple steps:
• Click on the tab “New Order” or F9 while running the trader’s terminal.
• Set the volume of trade, and choose the currency pair on which the transaction will take place.
• Type – expose “Pending Order”, then you will open the advanced menu in which you select by limit.
• Exercise price – this is the most interesting and unusual moment, there must be set the price lower for the current, otherwise the order will not be executed simply and you have denied fielding.
• Installation of stop orders – after issuing response rates, a mandatory install indicators warrant a stop loss and take profit. Ignoring orders usually leads to deposit drain.
At this stop loss is set below the trip level orders and take profit, respectively, above.
If you want to limit the effect of your order on time, as we expose the parameters of the indicator “expiration” date and time after which the order is a buy limit would cease to exist in case of non-fulfillment.
The strategy of using a pending order buy limit.
The basis of trading using by limit order is a trading strategy in the price channel, or correction, by which is meant a certain pattern of price movements. Which carries on its movement between the support and resistance lines, starting from one of them and making a U-turn in the opposite direction.
In our case, the main reference is the support line and a pending order should put it beside her, based on the reversal of the trend towards the growth rate of the currency pair in the forex.
The main rule of the use of this strategy is the existence of an uptrend, trading is carried out on the so-called kickbacks prices with operation of pending orders at the lowest points of the movement.
Bai limit allows you to take the maximum profit from the current trend of movement, it should be borne in mind that in the event of an error or a correct prediction, the operation may lead to losses.
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