A limit order is an order placed to either buy below the market or sell above the market at a certain price.
This is an order to buy or sell once the market reaches the “limit price”.
Once the market reaches the “limit price” the order is triggered and executed at the “limit price” (or better).
Current price is the blue dot.In the image above, the blue dot is the current price.
Notice how the green line is below the current price. If you place a BUY limit order here, in order for it to be triggered, the price would have to fall down here first.
As you can see, a limit order can only be executed when the price becomes more favorable to you.
Notice how the red line is above the current price. If you place a SELL limit order here, in order for it to be triggered, the price would have to rise up here first.
For example, EUR/USD is currently trading at 1.2050. You want to go short if the price reaches 1.2070.
You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a sell market order).Or you can set a sell limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class).
If the price goes up to 1.2070, your trading platform will automatically execute a sell order at the best available price.
You use this type of entry order when you believe the price will reverse upon hitting the price you specified!
A limit order to BUY at a price below the current market price will be executed at a price equal to or less than the specified price.
A limit order to SELL at a price above the current market price will be executed at a price equal to or more than the specific price.
This is an order to buy or sell once the market reaches the “limit price”.
- You place a “Buy Limit” order to buy at or below a specified price.
- You place a “Sell Limit” order to sell at a specified price or better.
Once the market reaches the “limit price” the order is triggered and executed at the “limit price” (or better).
Current price is the blue dot.In the image above, the blue dot is the current price.
Notice how the green line is below the current price. If you place a BUY limit order here, in order for it to be triggered, the price would have to fall down here first.
As you can see, a limit order can only be executed when the price becomes more favorable to you.
Notice how the red line is above the current price. If you place a SELL limit order here, in order for it to be triggered, the price would have to rise up here first.
For example, EUR/USD is currently trading at 1.2050. You want to go short if the price reaches 1.2070.
You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a sell market order).Or you can set a sell limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class).
If the price goes up to 1.2070, your trading platform will automatically execute a sell order at the best available price.
You use this type of entry order when you believe the price will reverse upon hitting the price you specified!
A limit order to BUY at a price below the current market price will be executed at a price equal to or less than the specified price.
A limit order to SELL at a price above the current market price will be executed at a price equal to or more than the specific price.
تبصرہ
Расширенный режим Обычный режим