Forex buy limit strategy


The Basics There are two basic types of market orders: There are four basic types of pending orders common in forex trading: Buy limit — an order to buy a security if the security reaches or goes below a certain price, selected by you. This helps protect you against a sudden price decline. Sell limit — an order to sell a security if it reaches or rises above a specified price. This order helps you take some profits off the table. You might set up a sell limit at or above your target price for a security.

This is the point at which you believe a security is fully-valued. You might set this just above a key point of resistance, on the technical trading theory that if a security breaks through this resistance point, it is set up for a bullish run to the upside. Sell stop — A standing order to sell a security if the price plunges below the current asking point. You might place this order just below a key level of support, on the technical theory that if whatever had been kicking in at that price to buy the security in the past is no longer there, the security is set up for a bearish run.

You want to be out of the position, or even take a short position, which allows you to benefit from price declines. The following two tabs change content below. Winners Edge Trading was founded in and is working to create the most current and useful Forex information and training available on the internet.

Latest posts by admin see all. Now Take your trading to the next level by taking our trading quiz to pinpoint your strengths and weaknesses. The Sell Stop can help protect you from sudden declines in the price of a security or currency pair.

The Basics There are two basic types of market orders: There are four basic types of pending orders common in forex trading: Buy limit — an order to buy a security if the security reaches or goes below a certain price, selected by you. This helps protect you against a sudden price decline. Sell limit — an order to sell a security if it reaches or rises above a specified price.

This order helps you take some profits off the table. You might set up a sell limit at or above your target price for a security. This is the point at which you believe a security is fully-valued. You might set this just above a key point of resistance, on the technical trading theory that if a security breaks through this resistance point, it is set up for a bullish run to the upside.

Sell stop — A standing order to sell a security if the price plunges below the current asking point. You might place this order just below a key level of support, on the technical theory that if whatever had been kicking in at that price to buy the security in the past is no longer there, the security is set up for a bearish run. You want to be out of the position, or even take a short position, which allows you to benefit from price declines.

The following two tabs change content below. Winners Edge Trading was founded in and is working to create the most current and useful Forex information and training available on the internet.

Latest posts by admin see all.