Entry Order in Stock Indices Trading and Limit Order in Stock Indices

Limit order definition - Entry limit is an order to buy or sell a Stock Indices Trading at a certain price which is a retracement level where price is predicted to pull-back to before resuming the original Indices trend. Stock traders use them to buy or sell at better market price. These types of orders are available in most online trading platforms, for our example we shall be using the MT4 stock index trading platform.

An entry of this type can be used to buy below the market level (up trend market retracement) or sell above the market level (down trend trading market retracement).

Buy limit - When buying, your entry buy limit is executed when the market falls to your set price. ( retraces downward )

Sell limit - When selling, your entry sell limit is executed when the market rises to your set price. ( retraces upward )

Entry orders are placed by traders when they expect price to bounce back after reaching this zone.

• Entry Buy Limit Stock Indices Orderbuy at a level below the current market price.

• Entry Sell Limit Stock Indices Ordersell at a level above the current market price.

Buy Entry Limit Example

In the example illustrated below, the buy limit order was placed to buy at a price below the current market price. Chart Point B is the point at which it was set.

Limit buy order entry placed to buy below the current market price

The price then retraced & went down to hit the buy entry limit, & afterwards price continued to move upwards in direction of the original Stock Indices Trading upwards trend. When the limit buy order was hit it changed into a buy.

Price hits buy limit, order now changes to a buy

Sell Entry Limit Stock Indices Order

In the example illustrated below a the sell entry limit was placed to sell at a price above the current market price. This is the level for the price retracement.

Entry limit sell order placed to sell above the current market price

The price then rallied, went up to hit the sell entry limit, & afterwards price continued to move downward in direction of the original Stock Indices Trading down ward trend.

Price hits sell limit, order now changes to a sell

When stock indices quote hit the set level the order changed to a sell, this is therefore a nice strategy to buy or sell at a better price after a retracement.

Setting Buy & Sell Limit Indices Orders in MT4 Trading Platform

To set up these orders in MT4 platform, Right click on Stock Indices Trading chart>>> Select 'Trading'>>> Then Select 'New'>>> Then on the pop up that pops up (shown & illustrated below), under label 'Type' select option of 'pending' instead of 'market execution'>>> Under the pending order options select the pending order type: for This trade select either "Buy Limit Stock Indices Order" or "Sell Limit Stock Indices Order" depending on whether you want to place a pending buy or sell.

Setting Buy & Sell Limit Indices Orders on MT4 Platform

Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibo retracement indicator & use the 38.2% retracement levels. This retracement level is watched by many traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.20% Fibonacci retracement level.

Fibo Retracement Tutorial - Fibonacci Retracement Guide

Tip: in Indices online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on Stock Indices Fibo Retracement & Fibo expansion use the right navigation menu section Technical Analysis.

Fibo Expansion Tool Tutorial - Fibo Expansion Tool Guide