How to Place a Pending Stock Indices Order in MetaTrader 4
There are different types of stock indices orders which a trader can use to trade in Stock Indices.
At the foundation of successful stock indices is making use of the correct stock indices order for its correct purpose. Most important things to remember about is this: Always understand the stock indices orders you place. Never place a stock indices order which as a trader you are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of stock index trading orders:
Types of Stock Indices Market Orders and Indices Pending Orders
Market Stock Indices Trading Order
This is the most basic type of stock indices order, market order is used to buy or sell at the current ask or bid stock indices quote stock index price. This refers to the quoted stock index price that appears on your stock indices platform.
This type of stock indices order is used for buying or selling according to the present exchange rate quotation in Stock Indices, the execution is instant. The min you want to enter a position you can buy & sell the stock index at a click of a button using a stock index market order.
Entry Stock Indices Orders
These are stock indices orders used to open a new trade position after the stock indices market reaches a stock index price specified by the trader.
Entry orders are used to buy or sell a stock indices instrument when it attains a certain stock index price target.
When a specific stock index price level is reached or broken then a stock index trading entry order is executed.
These Entry Stock Indices Orders are used to enter a stock indices trade at a specified price level. It is almost impossible to monitor the stock indices market every second and this is why an entry order can be handy. If you feel the stock indices market may take a certain action, such as break through a specific stock index price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Stock Index Order. Once the stock indices market crosses your specified level, your entry limit stock index trading order is executed.
There are 2 different types of entry orders - limit stock indices order & stop entry order.
These entry orders are also known as pending stock index trading orders.
Entry Limit Indices Order
An order to buy or sell at a specific limit.
An entry limit stock indices order can be used to buy below the current stock index price or sell above the current stock index price.
When buying, entry limit is executed when price falls to your limit zone.
When selling, entry limit is executed when the price rises to your limit level.
These Entry Limit Stock Indices Orders are placed by traders when they expect the stock indices market to bounce back after reaching the stock index price level at which the entry limit was placed.
- Buy Limit Stock Indices OrderSpecifies to buy at a level below the current market index price
- Sell Limit Stock Indices OrderSpecifies to sell at a level above the current market index price
Entry Stop Indices Order
An entry stop order to buy above the current stock index price or to sell below the current stock index price.
When buying, entry stop order is executed as the stock indices market goes upward & hits buy stop level.
When selling, entry stop order is executed as the stock indices market goes down and hits the sell stop level.
- Buy Stop Stock Indices OrderSpecifies to buy at a level above the current market stock index price.
- Sell Stop Indices OrderSpecifies to sell at a level below the current market stock index price.
