What is different between sell limit and buy limit?
What is different between sell limit and buy limit?
Three kinds of market order are available. One is instant execution. Secondly, stop order and thirdly, limit orders. Also known as stop loss or trading stop are limited orders. They also have a big advantage in the trading of forex. They've mainly got two types, buy limit and sell limit. We have often used it as a level of stop loss. Limit orders are stop loss. We use sell limits to stop loss if we have a buy position. We use buy limit as a stop loss if we have sale position We have used the sell limit to track whether we purchase positions for benefit and protect the money. We used a buy limit to lock the profits if we sell position in profit. I used a limit order for my trader if my analysis shows that price will rise after the dive. In my view, if price starts downwards after some increase, then I have used limit sell order. This is a very good tool that is very important for trade. Trading is not possible without the use of the limit order. Many traders took advantage of the stop loss.
Both buy and sell limit orders makes it possible for a forex trader to determine their own price instead of accepting the price when the order is placed. When a trader use a limit order to buy, it determines the main price they intend to buy. A buy limit order is accompanied with some critical conditions. With a buy limit order, the broker will set the price of the asset at the intended price, or a little bit below the price if it goes up in the market. A limit order isnít assured to be initiated. It will not initiate if the market didnít get to the level of price specified. Since limit orders can take more time to execute, the trade may want to put into consideration a much extended timeframe so the order donít close. A lot of trading platforms makes a one day trading their natural setting, but traders donít necessarily have to use that and can extend the timeframe to an extended time based on what is available on the trading system.
In forex trading market there are to facet to market condition that the market either sell or buy the market with go up or comes down .In,analysing the market the trader will analys and spot where he think the market is going to stop by placing the stop limit either to the point or below it . With regard to the question as to the different between buy and sell limit though in profit oriented both are the same but the major different between buy and stop limit is very simple buy limit show the exact position through which the trader intend to end his bullish position in the market while in another way round sell limit is the point to which the trader his intend to stop his bearish limit in the market . In a nutshell different between the two lies in buy and sell.
The sell limit and the buy limit are types market orders that are used in the forex market to make a customized trade according to a traders preference of time of entry and exit of a trade. This orders are actually pending orders which means that they keep a traders trade pending until the market price which the traders wishes to use for market entry is reached.
THE SELL LIMIT can actually be defined as an order where the trades of a trader can be executed at a limit price or higher price when selling in the market
THE BUY LIMIT is an order which makes the trades to be executed at a limit price or lower when a trader is making a buy in the market.
- A Sell limit order : allows you to place a sell pending order in the market at price higher than current market price.
- A Buy limit order : allows you to place a buy pending order in the market at price lower than current market price.
You can find those two type of pending orders in metatrader4 platform or metatrader5 platform via the pressing on New Order - then you should choose the option pending order from the list - then you will find four types of pending orders that you can use during your trading and you will find a sell limit order and a buy limit order among them, as you see in the images below :
Last edited by elssayed; 01-23-2020 at 02:53 PM.
Sell limit and buy limit are both pending order strategies. The buy limit is a type of pending order that allows a trader to set his or her buy order below the current market price while sell limit is a type of trading strategy that allows a trader to set his or her sell order above the current market price. In a normal market situation, you are not allowed to place a trade above current market price when you want to sell and you are not allowed to place a trade bellow current market price when you want to buy. But when using limit orders those limitations are lifted. The beauty of sell limit and buy limit orders is that they can be used as set and forget strategies.
First the sell limit and buy limit are both known as a limit pending orders in th forex trading market.
Differences between them isn't big at all the main difference is the buy and sell factor, to understand it better we will have to go into details
A buy limit is the process of executing a buying trade at below the current market price, example when eurjpy is at 121.80 and we place buy limit at 121.50, of price moves down to that area the buy position will be filled, meanwhile a sell limit is selling at the above market price, using the same example above but in this case sell trade is place at above 122.00 and of price got thier the sell trade will be filled.
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Definitely, a big difference lies between what a sell limit order suggest and what the buy limit order answers for too. Both orders are type of market orders which can save a trader from the stress of having to sit in front of his computer all day to place a certain trade as regards his analysis. For a sell limit order, this is to say that a trader deeply feels (from analysis) that the market would be a sell after reaching a particular price level, the price level will be entered into the system and the sell limit will get triggered once the market reaches that price level. For the buy limit, the market automatically buys for the trader when price level reaches the particular price level which have been entered for the trade.