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Trade
Pending orders on Forex
Pending order is an instruction for a trader to buy or sell a certain volume of trading instrument chosen by the speculator, at a certain price. Not given the current price of a currency pair in the market, a person can place a pending order at any price you see fit.
In this case, the transaction will be opened only when the market reaches the pending order level. Will be opening a position with exactly a given trader price. If you are working in Forex to use the orders to the market on opening or closing transactions will not prevent requotes. In other words, the transaction can open not for the price that was on the market during the transfer by the person about the purchase of a certain volume, on the other hand, is different from the desired value.
There are 4 types of pending orders:
1. Buy Limit
2. Buy Stop
3. Sell Stop
4. Sell Limit
Limit orders are designed to run on "lights out" and Stop at "breakdown". This refers to that if we want to set an order to buy a currency pair at a price greater than the current, then the transaction will use a Buy Stop. If we wanted the opposite to acquire a certain amount of the trading instrument at a price below the current, you would need to set Buy Limit. Situation with manufacturers of similar examples with the purchase.
Pending orders also enable the trader not to be all the time near the terminal. It is sufficient to display the position and you have to get away from work. Once the market price gets close to the order, the transaction will be yourself. It is possible to pre-set the values of Stop Loss and Take Profit that will allow people not to worry about the position. This approach to trade is justified, because apart from the free time we get an accurate fulfillment of our orders.
Usage of pending orders on Forex
Professional traders say that it is desirable to conclude all trades is through pending orders on Forex. The costs that have to tolerate the speculator in case of requotes with each trade transaction, over time, become very significant in size.
Trading system for pending orders:
• Breakout indicator-free system
• Strategy on minute
Not for than to lose part of their profits just because of the fact that our orders were processed with some delay. Trade using the orders is more accurate and predictable. The high volatility in the market deal with pending orders will be opened exactly at a specified price, in contrast to the order of the market.
Not do in this case is no exception to the rule. The fact that NDD execution does not guarantee the transaction for the price indicated in the order, the speculator. The market may not be the desired amount of tool that we want to buy or sell. It would be a mistake to think that the counterparty will be located at a price that is less favorable for us. Often there are situations that warrant setting a Forex account, we will receive the agreement even at a better price.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 260
| Rating: 0.0/0 |
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