Learn forex with minimal capital
Learn forex with minimal capitalOleh: Fajar Imam Maulna Pada 2015-12-28 20:54:24
One of the online forex trading facilities rarely used is a Pending Order. Whereas, Pending orders on forex can make it easier for traders to open a position at a price different from the position of the price now, without lingering glare at the screen. To be able to execute a strategy Pending Order, first you need to understand the sense and different types, then recently about how to do so.
Understanding And The Types Of Pending Orders
Pending Order is an instruction we as traders on the trading platform in order to buy or sell positions opened after a pair forex touches certain price levels in the future. There are four types of Pending orders;
1. Buy Stop, that is the instruction to open a BUY position on the level of prices higher than the current price.
2. Sell Stop, that is the instruction to open a position SELL at price levels lower than the current price.
3. Buy Limit, i.e. the instruction to open a BUY position on price levels lower than the current price.
4. Sell Limit, i.e. the instruction to open a position SELL at a price higher than the current price.
Usually, traders use Pending orders Buy Stop or Sell kind of Stop in hopes of breakout will occur after the price reaches a certain level. While the Buy Limit and Sell Limit used in the hope of reversal will occur.
How To Perform A Pending Order
First of all, make sure first that your broker mengzinkan use of Pending orders. Generally the broker that provides a trading platform Metatrader4 (MT4) allow everything, but there are also only allowing only certain types of Pending orders.
If you are already using MT4, then how did the Pending Order will be very easy. Just open the window of the New Order (New Order) as usual. When the form appears, fill in the Order currency and volume like order in General. After that, the new dropdown lyrics (down arrow) in the column "type". There will appear various types of Pending orders that can be applied. Select one, and then enter a price level where the order will be opened. Then, select the also a maturity (Expiry), or how long the Pending Order will apply. Lastly, click Place (pairs).
the strategy of the pending order
In applying the Pending Order, you can also install the Stop Loss and Take Profit. Thus, after completing the order form and click Place (Install), you can directly close the computer/laptop. Later, the order will be open and closed by itself when rates are up to the level that you have put in orders, even though you are not online. Easy isn't it? This is the strategy of the Pending Order can greatly facilitate the trader.
As an extra tip, it is recommended to utilize the Pivot Points or Fibonacci Retracement level to determine the price of the Stop Loss and Take Profit that accompanies the use of Pending orders. This is because You may not be present in front of the screen to do everything manually when Pending orders trigger.