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