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