How to Place a Pending CFD Order in MT4 Software
There are different types of orders which a trader can use to trade in CFD.
At the foundation of successful cfd is making use of the correct order for its correct purpose. Most important things to remember about is this: Always understand the cfd orders you place. Never place a cfd trading order which you are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of trade orders:
Types of Market Orders & CFDs Pending Orders
Market CFD Trading Order
This is the most basic type of order, market order is used to buy or sell at current request or bid cfd quote price. This refers to the quoted price which pops up on your trading software.
This type of order is used for buying or selling according to the current exchange rate quotation in CFD, the execution is instant. The min you want to enter a position you can buy & sell the cfds at a click of a button using a trading market order.
Entry CFD Orders
These are cfd orders used to open a new trade after the cfd market reaches a cfd price specified by the trader.
Entry orders are used to buy or sell a cfd when it attains a certain price target.
When a specific price level is reached or broken then a cfd entry order is executed.
These Entry CFD Orders are used to enter a cfd trade at a specified price level. It is almost impossible to monitor the cfd market every second and this is why an entry order can be handy. If you feel the cfd market may take a certain action, such as break through a particular price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Order. Once the cfd market crosses your specified level, your entry limit trade order is executed.
There are 2 types of entry orders - limit order and stop entry order.
The entry orders are also referred to as pending orders.
Entry Limit CFD Order
An order to buy or sell at a specific limit.
An entry limit order can be used to buy below the current price or sell above the current price.
When buying, entry limit is executed when the price drops to your limit level.
When selling, entry limit is executed when the price rises to your limit level.
The Entry Limit CFD Orders are placed by traders when they expect the cfd market to bounce back after reaching the price level at which the entry limit was placed.
- Buy Limit CFD OrderSpecifies to buy at a level below the current market price
- Sell Limit OrderSpecifies to sell at a level above the current market price
Entry Stop Order
An entry stop pending order to buy above the current price or to sell below the current price.
When buying, entry stop order is executed as the cfd market goes up-ward and hits the buy stop level.
When selling, entry stop order is executed as the cfd market goes down and hits the sell stop level.
- Buy Stop OrderSpecifies to buy at a level above the current market price.
- Sell Stop OrderSpecifies to sell at a level below the prevailing market price.
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Alternatives: EA Automated Robots or Copier Trading Signals
