Many forex trading strategies for the entrances to the position pending orders are used.However, many forex traders ignore them, preferring to market orders.And for good reason.In this video tutorial we will examine what the pending orders, what is their advantage, what are the types of otlozhennikov, when and how they can be used in trade.
How to trade pending orders in the forex?
In this article we look at a term such as pending orders on Forex.We'll find out what they differ from market orders and benefits.Consider the types of pending orders and when to use them.But just as they edit, delete, move, and so on.
What is a Market Order?Market order - an input for the price, which we at the moment the market offers.At the moment the currency pair EURUSD is 1.29999.
Go to the tab "new order."We have 2 buttons "Buy" and "Sell»:
Let's, for example, sell:
Comes notification from the broker server, and we, accordingly, the open sale position appears:
So much for market orders.We i
Here we have, there are several types of pending orders.First, let's get acquainted with the orders, with the types of «Buy Stop» and «Sell Stop»:
Let's choose Sell Stop:
In the next column, we suggest to choose the price at which we want to put our pending orderfor sale.Let it be 1.28700.
So we put up a pending order to sell at 1.28700.It hangs, but we have not yet sold.When the price will reach our mark, automatically, with the broker server to the sale.And we get an open position for sale, which will show a plus / minus, depending on the future price movement.
have beginners immediately raises a logical question: If we think that the price will fall, then why not sell now at the current market price?After all, when the price will move down, we'll get a head start in a certain number of points on which we place a pending order.That is, we immediately go out to the market and will be in the black if the price suddenly moves downwards.So why use a pending order if we can sell immediately?
fact that exposing pending orders, we give ourselves some insurance in case the price will not reach our order, unfold and go up.In this case, we will cancel our pending order, remove it and absolutely nothing to lose:
And if we would have sold at a market price that is available at the moment and the price would sharply reversed, we would have a loss.Thus, using the pending orders, we are paying those items that could theoretically earn by selling immediately.Exposing pending orders «BuyStop» and «SellStop», we increase our chances of winning trades.We increase our chance for a positive outcome of the transaction, but paying for it is a possible profit.But still, in general, the use of pending orders will reduce the amount of your losing trades and increase the percentage of winning.Although in theory we are missing a few points of the price movement, placing a pending order.
we expose the pending order «SellStop».Now let's expose on the purchase of «BuyStop»:
to price and 1.31000 nazhmёm place an order.
Principle pending order to buy «BuyStop» is the same as for sale «SellStop».That is, when the price will reach our pending order, which we put at 1.31000, we automatically purchased.
In some cases, it can help?Let's look at an example.Let us assume for a candle under which exhibited arrow:
some of your indicator or fundamental analysis or something else showed a signal to buy.You decide what to buy at the closing of the candle.You can purchase at that price, which is available at the moment.Or you can place a pending order just above the high point of this price.
put the line where you could put the wrong order:
Let's say you set aside an order to purchase «BuyStop» slightly above the high of the candle.So you insure yourself against a possible price reversal.And if the price goes even higher, and your buy signal would be true, then we automatically have bought at this nomination pending order.
Look what happened in the future.We place a pending order to buy «BuyStop».On the next candle price I turned around and went down.What do you do in that case?You simply remove a pending order and everything.Any losses you suffered.
And if you just have opened the order at the current market price of the candle, then you would have suffered losses.Certainly would load Stop Loss and accordingly you would lose a certain amount of points.
Thus, the pending order is a kind of insurance against price reversal.But the price may well reach a pending order and then turn around and bring a loss.There is a question of analysis, input accuracy and the like.In this paper, we consider only work with pending orders.
So when we expose Buy Stop above the current price, we like to say to our broker, buying when the price will reach a certain point.When we expose «SellStop», as if we we return the order to sell when the price will reach a certain mark, below the current.We can not put the order «SellStop» above the current price.And just as we can not deliver the order «BuyStop» below the current price.In this case, if you suddenly want to purchase a little lower than the price now, or vice versa, you want to sell a few points higher relative to its current value, in which case you will need to place a pending order by type «BuyLimit» and «SellLimit».
When placing orders you may have noticed that we have a few types of pending orders.This «BuyLimit» and «SellLimit»:
Let's look at «BuyLimit».Set the value below the current price.Let it will be 1.28800:
We put a pending order «BuyLimit»:
What does this mean?When the price falls to the level of our pending order, we automatically purchased.That is, you have calculated that at the level of 1.28800 rebound will occur, and the price moves up.You can sit for hours and wait for it.Nor is the fact that you have time to get exactly at this moment, when the schedule will move to the level you calculate prices.Or you can place a pending order «BuyLimit» and quietly go about their business.When the price will reach this level, it will happen automatically buy.
similar situation with orders Sell Limit.Expose value 1.31000:
Also, as with BuyLimit, when the price moves up and comes to our level of pending order SellLimit, we automatically sell.
This can be useful if you think that after this price level will unfold and move down.
If you want to sell above the current price, then you need to put Sell Limit.If you want to sell below the current price, then we expose Sell Stop.
If you want to buy above the current price, then exhibiting Buy Stop.And if you want to buy below the current price, while exhibiting Buy Limit.This refers to the type of turn-down orders.When placing a pending order you have the opportunity to ask not only the price and type, but immediately put Stop Loss and Take Profit.
If you do not put them directly, then you have the option to click twice on the panel open orders.
And in the menu to set or change if you suddenly decide to change their values of Stop Loss and Take Profit.
you can easily fix it.If you enter a value, click Edit, and after a couple of seconds, the pending order will be changed.To this is added value that we have exposed.
If you want to delete a pending order, double-clicks on it and press the yellow button with the word remove:
Thus, the pending order will be deleted.No broker commissions for these actions does not take.Any losses you suffer as a case of deleting a pending order.That is to expose and remove them you can as much as necessary.It's completely free.
I hope this article has helped you better understand what the pending orders, how they work and when to use them.