Forex buy sell limit stop

Trailing Stops, Buy Stop/Limit, Sell Stop/Limit.

Can someone explain to me how a trailing stop works and buy stop/limit and sell stop/limit?

I Use Metatrader4 and I entered a buy order at say 104.30.

I set my trailing stop in Metatrader when I right click on the order to 15 pips.

Is this what happens? The market moves 15 pips up to 104.45 so now the stop loss moved up to 104.15?? What if I have a stop loss already set to 103.70 for example? Does it take away that stop loss and move it up to 104.15 trailing stop? What if the market moves in the opposite direction and your losing pips..Say you buy at 104.30 and now its going down and your Trailing stop is 15, what happens?

Also, the trailing stop moves 15 pips up every 15 pips the market moves and vice versa?

A little confused about this.

Now I thought that trailing stops were used to lock in pips right? Is that the same thing as placing buy stops and sell stops? What's the difference between that and buy limits sell limits ? So far I have been setting pending orders only using buy stops and sell stops..

If I am in an order already I can lock in profit by setting a sell stop to lock in the profit of a trade right? For example, I buy at 104.00 and im up 40 pips at 104.40 so I set a sell stop at 104.30 to lock in 30 pips? But at the same time the original order is still in just in case the market continues to move up? Am I getting this right?

Sorry if my questions are all over the place, and might confuse some. Thanks for everyone's help.

The trailing stop move your stop to breakeven as soon as the market goes in your favour by 15 pips (your example). Then trail your stop pip by pip. When the price retrace and hit your new stop, the order will be closed.

Here's what you'll find in the HELP area (F1) of your platform for pending orders:

Hope that helps.

First time posting!

Does anyone know how to change the date/time bar in MT4 to local time.

So when going long, or buying, is ' Take profit ' (TP) the same as buy stop or buy limit? (I'm not on meta 4 platform as yet, using oanda not meta 4, so terminology may be different?)

Thank's, and best wishes. G.

Should be easy enough. Check preferences/options etc?

Your order can have only one StopLoss so if you set a new stop loss the old is not used anymore.

you entered long at 104.30 with a stop loss at 103.70 (60 pip Stop loss)

Market goes in your favour and you want to protect your Profitable position. You change the stop loss and set it into profit zone of the order at e. g. 104.50 Now if price retrace your order will be closed at 104.50 and you get profit of 20 pips.

You don't need to use trailing to protect orders.

Trailing will automatically change your position Stop loss to keep it close to current market price.

if you enable trailing by 20 pips your stop loss will be 20 pips away from the highest market value.

thanks for the tut landofcash.

i've also seen a tut about exiting 70% and let the 30% go on for possible profit.

Hi Beef, Should be easy enough. Check preferences/options etc?

Forex orders.

Limit Order.

An order to buy or sell currency at a certain limit is called Limit Order . When you buy, your order is carried out when the market reached down your limit order price. When you sell, your order is carried out when the market reaches up your limit order price. You can use it to buy currency below the market price or sell currency above the market price. There is no decrease with limit orders.

Market Order.

The second one is Market Order . It is an order to buy or sell at the running market price. Market orders should be used very carefully as in fast-changing markets there is sometimes a disparity between the price when the market order is given and the actual price of the deal. This occurs because of market decrease. It can lead to a loss or gain of several pips. Market orders can be used to enter or exit a trade.

One Cancels the Other (OCO)

One Cancels the Other (OCO) order is used in case if one simultaneously places a limit order and a stop-loss order. If either order is carried out the other is abrogated which lets the broker to make a deal without supervising the market. Once the market reaches up the level of the limit order, the currency is sold at a profit but when he market falls, the stop-loss order is used.

Stop Order.

The last one is Stop Order , which is an order to buy above the market or to sell below the market. It is usually used as a stop-loss order to diminish losses if the market behaves opposite to what the broker supposed. A stop-loss order lets sell the currency if the market goes below the point appointed by the broker. In forex market there are four various types of stop orders.

Chart Stop order is a technical analysis that lets elaborate many possible stops caused by the price charts' action or by different technical indicator signs. The swing high/low point is often used as an example of a chart stop is like. In the figure, a broker with our suppositional $10,000 account dealing with the chart stop can sell one mini lot at the risk of 150 points, or approximately 1.5% of the account.

Another type of the chart stop is Volatility Stop order ; it uses volatility instead of price action to fix risk parameters. The sense of it is that when prices strongly fluctuate, the broker has to adapt to the current conditions and let the position more space for risk to avoid being stopped out by intra-market noise, so it is a situation of high inconstancy. On the contrary, can be a situation of a low inconstancy, in which risk parameters would need to decrease.

The volatility stop also lets the broker use a scale-in approach to get a better "blended" price and a faster breakeven point in this following Figure. The joint risk position exposure should not be more than 2% of the account. Therefore, it is extremely important that the broker use smaller lots to size his or her joint risk in the trade.

Equity Stop order is definitely the easiest of the four stops orders. The risk is only with the predetermined amount of one's account on a single trade. On a suppositional $10,000 trading account, a broker risks $300, which is approximately about 300 points, on one mini lot (10,000 units) of EUR/USD, or only 30 points on any dealt. Sometimes brave traders choose to use 5% equity stops. However, it is important to realize that this sum is the upper limit of reasonable money management, as ten consecutive wrong trades would decrease the account by 50%. However, the equity stop order puts an arbitrary exit point on a trader's position - and this is it is only but a great weak point. The trade is sometimes abolished to meet the trader's internal risk controls and not because of a logical response to the price operation of the marketplace.

Finally, Margin Stop order can serve as an effective method in forex market, if the broker uses it prudently though it is used less than other money management strategies. forex markets function uninterruptedly that is why forex players can wind up their customer positions immediately when they trigger a margin call. That is why forex customers are seldom in danger of generating a negative balance in their account as computers are supposed to close out all positions.

According to this strategy, the trader should divide the money into ten identical parts. Therefore, if the capital were $10,000 the broker would open the account with a forex dealer but only send $1,000 instead of $10,000 and leave $9,000 in the bank. Many forex market traders offer 100:1 leverage, so a $1,000 deposit would give the trader the opportunity to take control of one standard 100,000-unit lot. $1,000 is the minimum that the dealer requires and even a 1-point move against the trader would cause a margin call.

Sometimes the trader decides to trade a 50,000-unit lot position which lets him or her to get about 100 points. Just to compare, on a 50,000 lot the dealer needs a $500 margin, so $1,000 - 100-point loss multiplied on a 50,000 lot is $500. Never mind of how much leverage the trader assumed if he's ready to risk or not, this would stop the dealer from blowing up his or her account in just one trade and would let the dealer to take many fluctuations at a supposedly beneficial trap worrying of setting manual stops. This advice may be useful for the dealers who are used to risking a lot but also getting a lot.

Sell limit and sell stop in forex.

Sell limit sell stop are some of the tools a forex trader can use to make headways in the forex market. Forex traders are not directly involved in the forex market. They do have their own accounts; they initiate actions regarding what they want to trade and how they want to trade it but not without a forex broker. The forex broker gets “orders” or “requests” form the trader on what to do regarding the trader’s account and eventually proceeds to make effective changes as requested by the trader.

One forex trading tool a forex trader uses to communicate with her broker is the forex order(s). There are quite a number of them but for the purpose of this article, we are going to focus on the following.

WHAT IS A LIMIT ORDER?

A limit order is an order to buy or sell a particular security at a specified price or at a price better than the specified price. Limit orders are of two types.

The buy limit forex order Sell limit forex order BUY LIMIT FOREX ORDER.

A buy limit order is an order given by a trader to her broker asking her to buy a particular security if the price of the security falls to the stated limit price or even further than that. The trader buys these securities in hopes that their value would rise in future. If the value of the securities eventually rises, the trader sells them off to make profit. The trader can as well set a sell limit forex order to take care of this.

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. By doing so, they are able to make some profit from it. If the value of the security is expected to go down in future, the trader can sell the security at its current price and then buy them back when it is cheaper.

SELL STOP AND STOP-LIMIT FOREX ORDER.

In forex trading, a sell stop is a trade order from a trader to a broker asking that a trade be executed in the best possible price once the price gets to a stated price or below.

A stop-limit order is a combination of the features of a limit order with that of a stop order. In a stop-limit order, two different prices are picked. At the first price, the specified action is initiated; this is known as the “stop”. When the value of the security gets to the second price, it is said to be outside the trader’s investment target.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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6 MT4 Order Types (Sell Stop Buy Stop Buy Limit Sell Limit Market Order)

Learn everything about MT4 order types like buy stop, sell stop, sell limit, buy limit, mt4 market buy order and market sell order in this post.

You see, the MT4 trading platform really makes orders so easy in that there are only 2 Main Types of MT4 orders:

Pending orders (there are 4 types: buy stop, sell stop, sell limit, buy limit) Market Execution Orders ( Buy by Market, Sell by Market)

Lets get more into detail of how each of these MT4 oder types work and in what kind of situation you can use them.

Table Of Contents.

MT4 Order Types.

If you are new forex trader just starting in forex and you are learning about the MT4 trading platform, you will most likely be asking the following questions:

What is a buy limit order in MT4 And How Do You Use It in what type of condition? What is a buy stop order and how to use it to trade? What Is a sell limit order and where is it placed and how to use it? What Is a Sell Stop Order and how do you use it to trade? What Is a Market Order?

Well, if you are asking these questions and ended up here, it means only one thing: you are just starting out and learning about forex trading.

All these above are MT4 orders and each are used differently and in here you will get answers to such questions as these:

What is the difference between buy stop order and a buy limit order? what is the difference between a sell stop order and sell limit order and you also get to know the types of trading setups that each of these mt4 order types can be applied to.

MT4 Order Types Can Be Daunting (For A Beginner).

I remember the first time I opened up my MT4 trading platform and did not know the Mt4 Order Types I was staring at on the screen.

I did not know what a market order was, let alone what a sell limit or sell stop order was or what a buy stop or buy limit order was.

It took a while for me to understand what the differences between the MT4 order types were and this was done by demo trading and playing around with the different order types… and if you are new forex trader, I’m sure you would do the same.

One of the biggest thumbs up for the Mt4 trading platform is that, it is so much easier that other trading platforms from what I’ve seen and if you decide to use the MT4 trading platform, you are making a good choice.

The order types in the MT4 trading platform come under only two main categories:

Under pending orders, you have 4 specific orders:

Pending order are used to catch the price move. Pending orders are like traps…they wait for price to come to them and hit them before these pending orders get activated.

Buy limit and sell limit orders are referred to as “limit orders” whereas buy stop and sell stop orders are referred to as ” stop orders.”

2 Types of MT4 Market Execution Orders.

Under market execution, you have 2 specific orders:

So when you press the “Sell by Market” or “Buy by Market” buttons as shown below, your order gets filled at whatever the market prices is at the moment:

2 Types Of MT4 Limit Orders.

Now, that you’ve had an overview of each order types, lets dig in a bit more into MT4 Limit Orders. As mentioned, MT4 limit orders are pending orders:

What Is A Sell Limit Order and How Does It Work?

A sell limit order is a pending order that is place above the current price of the market in the anticipation that price will head up to it, hit it and activate it and go back down.

A situation where you can use a sell limit order is when price is heading up to a resistance level and you think that once price hits that resistance level, it will fall back down. So you will have to place a pending sell limit order at the price level where you think the market will come and turn back down.

What Is A Buy Limit Order and How Does It Work?

Now, let me talk about a buy limit pending order: a buy limit order is a pending order that is placed below the currency market price in the anticipation that price will fall down, hit it, activate it and head back up.

Here’s an example of a buy limit order in action:

2 Types Of Mt4 Stop Orders.

Mt4 stop order operate completely opposite to the limit orders. As mentioned above, there are only two types of mt4 stop orders:

What Is A Sell Stop Order And How Does It Work?

Here’s the definition for a sell stop order: a sell stop order is a pending order that is placed below the market price in anticipation that the price will fall down, activate it and continue to fall down further.

An example of how and and where you can use a sell stop order is when you want to trade a breakout of a rising trendline or a support level. This would have been a good example of trading using a sell stop order:

What Is A Buy Stop Order And How Does It Work?

Here’s the definition for a Mt4 buy stop order: a buy stop order is a pending order that is placed above the market price in the anticipation that the price will rice up, hit it, activate it and then continue rising up.

Here’s an example of trading the breakout of a resistance level using a buy stop order will look like:

So there you have it, these are the types of forex orders in the MT4 trading platform. The mt4 trading platform is in fact one of the simplest and the most easiest for any new forex trader to get used when all things are considered, these are the only orders you’d have to use when you use the mt4 trading platform:

sell limit order buy limit order sell stop order buy stop order sell by market order and buy by market order.

One you understand the difference of each order type, then it it makes it easy for you to choose which order type to use based on what type of trading strategy you are going to implement.

Don’t forget to like, tweet and share this post on MT4 order types .