SELL LIMIT FOREX ORDER A sell limit forex order is an order given by a forex trader to her client to sell a particular security if the value of the security rises to a particular point or further. On a normal ground, traders sell their security when the price of the security rises above what the security cost 3/4/ · What is a Sell Limit Order in Forex. As explained above, limit order is when you wait for the price to reach a certain price level and then reverse back. Sell limit order in Forex is the case when you have price rising up. The price of a base currency is gaining value. On one level you expect the price will change the direction What is a sell limit order?. Well, a sell limit order is a pending order that is placed above the current price and that you expect that price will rise up, hit and trigger your sell limit order into a sell trade and price will fall down and your trade will start making you profits
What Are the Rules for Stop/Limit Orders in Forex?
by Frano Grgić Mar 4, what is a sell limit order in forex, Forex Order Types. There are two limit Forex ordersbuy and sell.
Buy or sell limit order have logic in a way that the current price on the market must first reach that level in the direction, for buy bear market or for sell bull and then order will be triggered. That means when you want to use the Sell Limit order market price must move in bull direction long — UP from current position and when price reaches a certain level you have defined, a level at which you have set pending sell limit order then order will be triggered.
When you want to use the Buy Limit order market price must move in bear direction short — DOWN from current position and when price reaches a certain level you have defined, a level at which you have set pending buy order then order will be triggered. Generally meaning is you expect that the market will change direction when price reaches the level you expect.
Limit order is used mostly in swing trading where traders expect that trend will reverse. Limit orders are placed mostly on a confluence level where several indicators meet and indicates that price could reverse.
As explained above, limit order is when you wait for the price to reach a certain price level and then reverse back. Sell limit order in Forex is the case when you have price rising up. The price of a base currency is gaining value. On one level you expect the price will change the direction. You expect that the price will reverse back and it will move DOWN. On that level you open the sell limit order and wait for the price to come up. When the price reaches that level it will automatically activate and you will have open order.
There is no need to sit in front of your computer or smartphone and wait for the price to activate the sell limit order. If you shut down your PC or smartphone your sell limit order will still be activated, what is a sell limit order in forex.
The reason is that your order is sent to the broker server and your sell limit order details, like entry level, stop loss and take profit level are saved on the server.
Those data are not saved on your PC or smartphone so there is no worry they will be cancelled once you turn off your PC or smartphone. Sell limit order can have other details set like stop loss and profit level.
Stop loss is very important because you do not want to have sell limit order activated without stop loss. If the trade becomes a losing trade you want to cut your loss and have the sell limit order closed.
If you do not set a stop loss you can expect that the price will not reverse and you lose your money. And without stop loss the only level that can close your order is margin call.
Margin call will be activated when your account balance loses the majority of the money. That is not something you want to happen to you. Profit level is also good to set because if you are not following the market when your sell limit is activated you can expect that the order will close when you reach target level. Without a profit level set it can happen that the market reverses and reaches your target level, but it does not close.
Then the market can continue to rise up and reach your stop loss level. That is the case you do not want to happen. The case when your order is profitable and then close as losing one. To avoid that you should always set a profit level so you make money when the market reverses from the sell limit entry point.
This way you expect by your trading strategy that pair must come to 1. If price does not reach that level you do not expect that it will reverse and your trade will not be activated. You need to select new order on the Metatrader 4 and order window will open. Here you need to select:. Those are main conditions you need to fulfill before you can open order.
It says to you that you have placed sell limit order at specific price with SL Stop Loss and TP Take Profit levels. When you take a look into chart you will see your sell limit order. There is three lines on the chart indicating your sell limit price, stop loss and take profit levels. As you can see my sell limit price 1. I am expecting that price after it hits my sell limit order at 1.
Know that you what is a sell limit order in forex close your order whenever you want. You do not need to wait, take profit level or it hits you to stop loss. If you are watching the market live and you see that the market could reverse earlier than you thought at the first time, you just open the order window and close it.
That way you react earlier if you see possible problems and take the profit before it hits your what is a sell limit order in forex loss or you can prevent bigger loss if the trade becomes losing trade. As you can see at the beginning of opening a sell limit order in Forex you have the possibility to set an expiration date. For example, if today is and I set the expiration date to the trading platform will close my order if the price does not reach my entry level.
This is useful for you because you can cancel the sell limit order if the price does not play as you thought it could. Your strategy for sell limit order can be valid for a day or few days. And to prevent some problems in the future after your strategy is no more valid you use the expiration date to close pending sell limit orders. Swing trading is when you expect that the price will change direction somewhere in the future at the certain level. Sell limit order have other details like stop loss and profit level which you should use each time to use the most of the sell limit order.
One of the strategies you can use to set sell limit order is to place them on the confluence level. Confluence level is where several support or resistance lines cross, what is a sell limit order in forex. A Forex trader since I like to share my knowledge and I like to analyze the markets.
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What are Forex Currency Pairs, what is a sell limit order in forex. List of Currency Pairs. Trading Platform Metatrader. Forex Trading Account. Basic Trading Terms. Trading Volatility. Forex Trading Orders. Forex Pending Orders. what is a sell limit order in forex by Frano Grgić Mar 4, Forex Order Types. Home » Forex Trading Guides » Forex Order Types » what is a sell limit order in forex. Contents 1 What is Limit Order 2 What is a Sell Limit Order in Forex 2.
What is a Sell Limit Order in Forex As explained above, limit order is when you wait for the price to reach a certain price level and then reverse back. The change will be from bullish sentiment to what is a sell limit order in forex sentiment. Everything will be done automatically. Sell Limit Order Stop Loss Sell limit order can have other details set like stop loss and profit level. Sell Limit Order Profit Level Profit level is also good to set because if you are not following the market when your sell limit is activated you can expect that the order will close when you reach target level.
How to Open Sell Limit Order On the image below I have made one example to simplify whole process of Sell Limit order. Think in this way when you want to explain to yourself how Sell Limit order works. Here you need to select: Order Type Pending Order Type Sell Limit Volume which lot size do you want to open Price at which price order will open Stop Loss at which price your order will close if order becomes losing trade pay attention that stop loss must be above price you have set to open sell limit order Take Profit at which price your order will close if order becomes profitable one pay attention that take profit must be under price you have set to open sell limit order Those are main conditions you need to fulfill before you can open order.
It says to you that there is error in entered data. Sell Limit Expiration Date As you can see at the beginning of opening a sell limit order in Forex you have the possibility to set an expiration date. That is the setting that will close your order if your order does not open up to that date.
Conclusion Sell limit order in Forex is a very good tool to have if you are using swing trading. That area will give more chances to sell limit order be a profitable trade. FREE WORKSHOP For beginners who does not know how and where to start with trading In the workshop What is a sell limit order in forex will tell you what steps to do in order to what is a sell limit order in forex yourself into a trader. WATCH FREE WORKSHOP. Was this helpful? You can support my efforts by buying me a coffee ��, what is a sell limit order in forex.
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, time: 26:13What is a Sell Limit Order
SELL LIMIT FOREX ORDER A sell limit forex order is an order given by a forex trader to her client to sell a particular security if the value of the security rises to a particular point or further. On a normal ground, traders sell their security when the price of the security rises above what the security cost What is a sell limit order?. Well, a sell limit order is a pending order that is placed above the current price and that you expect that price will rise up, hit and trigger your sell limit order into a sell trade and price will fall down and your trade will start making you profits A sell limit order is part of the pending orders class, where an order is placed on a broker’s platform an remains inactive until filled. Only when it becomes filled the sell limit order becomes a market order. Sell limit orders can be placed on several financial instruments, such as stocks and Forex CFDs
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