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Orders

Order typesIn the past, a person would typically have to go to the brokerage or another financial entity to buy or sell a security. The trade would be then settled through a personal meeting or, as technology progressed, over the phone. Nonetheless, the implementation of modern technology within the financial markets of the 21st century made placing buy and sell orders as easy as a few mouse button clicks. Nowadays, many trading platforms allow their clients to execute various types of orders beyond ordinary buy and sell orders. Key takeaways: Using limit orders is generally considered one of the safest ways to buy or sell a security. Modern technology allows placing buy and sell orders with a few mouse clicks. A stop-loss and stop-limit orders are used to protect an investor’s capital. A trailing stop locks in some of the accrued profits. Quick trade orders get instantly filled by a single or double click on a bid or ask button. Limit order A buy limit order is used to buy a security at a specified price. This type of order is executed automatically in a case when the price of a security is lower than the value of the buy limit order. A sell limit order is used to sell a security at a specified price. It gets automatically filled when the price of a security is higher than the value of the sell limit order. This design occasionally allows for the execution of the buy limit order or the sell limit order at a better price. Generally, limit orders are one of the safest ways to purchase or sell a security. Quick-trade order Some trading platforms allow the use of quick-trade orders. A quick-trade order is a type of order that is instantly filled by a single or double click on a bid or ask button in a trading platform. These orders are relatively safe to use. However, filling this type of order in highly volatile markets might be difficult due to a quickly changing price. Market order When traders choose to use a market order, they let the market set the price of security. In essence, this means that for a buy market order, a trade execution occurs at the nearest ask. For a sell market order, a trade execution takes place at the nearest bid. The use of the market order is less safe in comparison to limit order because it allows for worse filling of orders in illiquid markets and markets dominated by algorithmic trading. However, some platforms offer their clients the option to choose the tolerance threshold for such trade orders. Good ‘Til Canceled order (GTC) This type of order remains active until it is filled or canceled. Stop-loss and stop-limit orders A stop-loss order sells a position at a market price if it reaches or passes a specified price. Unlike a stop-loss order, a stop-limit order liquidates a position only at a specified or better price. These types of orders are used to protect investor’s capital before depreciation. Trailing stop order A trailing stop order trails the price as it moves in the trader’s favor. For a long position, a trailing stop moves higher with the price but stays unchanged when the price falls. Similarly, for a short position, a trailing stop moves lower with the price but remains unchanged when the price rises. The intent of a trailing stop is to lock in some of the accrued profits. Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
COINBASE:ETHUSDEducation
by Tradersweekly
2
Backtests how tradingview mislead results with HL wicks orders ?Anybody could explain to me how to avoid a take profit order being filled on tops of wicks ? In this example I'm backtesting AMD gettex whole history. First of all I think this 900% wick is erroneous data. Then, I activated the option "After order is filled" and I'm backtesting the 1W timeframe. This bug gets triggered often on stop sell orders. I think I managed to avoid it on limit buy by checking programmatically if bar's open is after or before. Kinda complicated to sort it out.
GETTEX:AMDLong
by sleptongems
The Different Entry Order TypesTake your Trading Skills to the Next Level: Understanding Entry Order Types 💪 When it comes to trading, mastering the art of order execution is essential for success. Let's dive into the different entry order types that can help you optimize your trading strategy and make more informed decisions: 𝐋𝐢𝐦𝐢𝐭 Order: A limit order is your ticket to precision. With this order, you specify the exact price at which you want to buy or sell an asset. It's perfect for setting target entry or exit points and ensures you don't miss out on opportunities. Limit orders give you control and prevent you from overpaying or underselling. 𝐌𝐚𝐫𝐤𝐞𝐭 Order: Market moves fast, and sometimes you need to act quickly. A market order is your go-to choice for immediate execution. It buys or sells an asset at the current market price, ensuring your order is filled promptly. Market orders are handy when you want to enter or exit a position quickly, but keep in mind that the execution price may vary slightly from what you see on the screen. 𝐒𝐭𝐨𝐩 Order: Risk management is paramount in trading. Enter the stop order, a tool used to limit losses or protect profits. It lets you set a predefined price at which your order will trigger, helping you maintain discipline in volatile markets. Stop orders are your safety net, ensuring you don't let emotions dictate your trading decisions. Whether you're cutting losses or securing gains, stop orders are your trusty companion. Each entry order type serves a specific purpose in your trading arsenal, and understanding when and how to use them can make a significant difference in your trading success. Here's a quick breakdown of scenarios: 🔸Limit orders are great for entering trades at your desired price levels or taking profits when prices reach your targets. 🔸Market orders are ideal for getting in or out of trades swiftly when time is of the essence. 🔸Stop orders are essential for managing risk, preventing significant losses, and securing gains in volatile markets. Keep honing your trading skills, and don't hesitate to explore these different entry order types to elevate your trading game. By using these tools effectively, you can navigate the financial markets with confidence and strategy. Remember, successful trading requires continuous learning and adaptation to market conditions. Stay informed, stay disciplined, and keep your trading journey on the right track. Thanks for Your attention, sincerely yours, Kateryna🫶
BITSTAMP:BTCUSDEducation
by RocketBomb
9
📉Mastering the Art of Control: Stop and Limit Orders Unveiled📈 📌In the thrilling world of forex trading, where fortunes rise and fall in the blink of an eye, having the ability to control your trades is paramount. Among the arsenal of tools at your disposal, stop and limit orders reign supreme. These magnificent creations empower traders to set their own boundaries and ensure that the roller coaster ride of forex trading remains under their command. So, buckle up and embark on this exciting journey of understanding stop and limit orders! 📌Understanding Stop Orders: Stop orders are like steadfast guardians, appointed to protect your hard-earned profits or minimize potential losses. Imagine them as your personal bodyguards ready to leap into action at the first sign of trouble. When you place a stop order, you determine a specific price at which your trade should be closed automatically if the market moves against you. This mighty order helps you sidestep the risk of your entire trade being wiped out by sudden market swings or unexpected news events. 📌Shining a Light on Limit Orders: Limit orders are akin to skillful negotiators, tirelessly working to secure the best possible price for your trades. Picture them as your savvy diplomats, taking charge of your trades and ensuring you reap maximum rewards. With a limit order, you specify a particular price at which you want to enter or exit the market. It’s like having an invisible hand that waits patiently until your desired price is met before executing your trade. This remarkable order empowers you to seize opportunities and helps lock in your well-deserved profits. 📌The Dance of Stop and Limit Orders: Now that we understand each order's unique strengths, let's witness the masterful coordination between stop and limit orders, as they work together seamlessly to protect and maximize your forex trading outcomes. By using stop and limit orders in tandem, you can create a framework that balances risk and reward, empowering you to navigate the treacherous waters of the forex market. 📌Example Scenario: Imagine you're trading EUR/USD, and you've just entered a long position at 1.2000. You're optimistic about the pair's potential, but you don't want your gains to vanish overnight. In this case, you place a stop order at 1.1950. This ensures that if the market takes a nosedive and reaches 1.1950, your trade will be automatically closed, safeguarding your hard-earned capital. Simultaneously, you set a limit order at 1.2100, securing your target profit level. It's like having a guardian angel watching over your trade, ensuring that once your desired profit is reached, your trade is closed automatically, guaranteeing you a win. 📌Conclusion: Stop and limit orders are the under-appreciated heroes of forex trading, granting you the power to control and protect your trades. With stop orders acting as your shield and limit orders as your sword, you can set your boundaries and seize opportunities with confidence. Harnessing the potential of these remarkable orders will elevate your trading game by ensuring you stay in charge, even when the markets are at their most unpredictable. So go forth, brave traders, and let your stop and limit orders pave the way to victory in the thrilling realm of forex trading! I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
7
ORDER TYPES IN TRADING | LIMIT VS STOP ✴️Types of orders in trading There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level. ✴️Stops vs limits A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price. On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price. ✴️Stop orders explained You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order. ✴️Stop-loss orders A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price. ✴️Stop-entry orders A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price. If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price. Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum. ✴️Limit orders explained Like stop orders, limit orders can be used to open and close trades. ✴️Limit-entry orders A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above. ✴️Limit-close orders A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position. The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically. 😊Thank you for reading, guys😊 ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
5
🟢STOP AND LIMIT ORDERS EXPLAINED🟢 ✴️Types of orders in trading There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level. ✴️Stops vs limits A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price. On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price. ✴️Stop orders explained You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order. ✴️Stop-loss orders A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price. ✴️Stop-entry orders A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price. If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price. Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum. ✴️Limit orders explained Like stop orders, limit orders can be used to open and close trades. ✴️Limit-entry orders A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above. ✴️Limit-close orders A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position. The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically. 😊Thank you for reading, guys😊 ✅Like and Subscribe for more education✅ Do you like this post? Do you want more articles like that?
Editors' picks
Education
by ProSignalsFx
38
Advanced limit order swing trading strategySo if you haven't read my other writeups first, you probably should. Non-speculative limit orders are the basis for this trading style. Now, the idea behind this system is simple. You're using a script, EA or bot to create dozens of limit orders very quickly, with predetermined stop losses and take profits, to capture swings against active trends. See a trend. Any trend. Are the candles going up? It's an uptrend. Are they going down? Downtrend. In this trend, you want to identify momentum candles that have a wick. I'm not talking about hammers, I'm talking about candles that close with momentum in the direction of the trend, but just happen to have a wick that's at least 5% the length of the candle body. When you see this, you're going to place a limit order cluster above (or below) that wick to counter-trend it. As the trend continues upward, you might see more wicks like this, and you're going to do it again. And again. And again. The pic above shows an 18 pip range of limit orders getting filled, with limit order grids being stacked on top of wicks. This can definitely be considered Martingale-like, so you obviously want to be careful with how much you're risking. If 12 orders are each valued at 0.01, and your stop loss and take profits are both set to 30 pips, then that means each individual limit order is worth $3 and totals to $36 profit or loss. Your take profit structure can be greater or lower than the 1:1 ratio, as this is just an example and it's something you would have to backtest and figure out for yourself. However, stacking grids to catch a swing can be highly rewarding. It's possible every ticket of your lowest grid hits its SL (although I'd say pretty unlikely as long as you're spacing is good for the currency pair), but every grid you stack up on top of that will greatly increase your odds of winning. i.imgur.com i.imgur.com This is how it would look in practice. The limit orders are based off of these wicks: i.imgur.com Every time I see a wick in that uptrend, I'm selling into it. My limit orders start 5 pips away from the top of the wick. I click "Sell limits" and I'm ready to go. I'll leave a link to my EA (for MT5) at the bottom. I cannot stress enough that you would have to really backtest this and get comfortable with whatever currency pair or asset you're trying to trade, because it's important. And always bet small when you do this! This is about trying to make money regardless of market conditions, not trying to bet big and win big. If you have a $1000 account, maybe risk $20 per grid (grid meaning every individual cluster of limit orders). No one can tell you how to manage your risk obviously, but losing shouldn't be a big deal. My MT5 EA: mega.nz My settings for a 3 minute EUR/USD char
Education
by WinkleTrades
Trade setups I would take and how to manage riskJust like this. Buy and sell limits above and below structure, as in the most recent highs/lows, with your TP in general being a return to structure. Brutally easy way to scalp and make money. Few more examples... This one shows where the stop loss might be. In general, I go with a 2/3 or 3/4 type rule, where I'll have a wide cluster of limits, then a gap, then a hard stop that closes all of them. Just in case. Your order clusters should be wide enough with this strategy that it almost never gets hit. Regular market movement should not be hitting your stop loss. That kind of behavior should generally be reserved for news events that catch you off guard. Now as far as actual risk goes, this is entirely determined by you and no one else. There's no single correct way to do this. A lot of people are dead set on the idea that you should never risk 10% of your account, but how big is the account? Is it $10,000? Is it $100? If it's $100, why not risk $50+ when the odds of a loss are very low? On EUR/USD, you might have a hard stop loss of 50 pips with 15 tickets separated by 2 pips each. Each ticket would be 1k (0.01 lots). If 1 pip on a 1k is $0.10, then a 50 pip stop loss is $5. Your second ticket is 2 pips away, so that loss would be $4.80. Third $4.60, and so on. It's doable, right? Maybe the price dips 20 pips into your counter-trend limit cluster, eating 10 limits. Then the price returns to the support or resistance near your starting point, and you decide to close all of your tickets. The profits from that would be $2.00, then $1.80, then $1.60, and so on. That might not seem like much in comparison to the stop loss, but consider this: your stop loss will have a 0-5% chance of ever getting hit. It's straight profit. And it's constant, and consistent. I cannot stress that enough! You can be doing this all day long. So, what if you want to follow a trend in this manner? It's the same deal, really... just throw limit orders below (or above) trending wicks. Like this: It's all just structure. You bet with structure, and you bet against structure. At all times. You only require a 50% retracement from your starting ticket in order to break even. If you even feel uncomfortable with what's going on in front of you, it doesn't take much for you to get out safely and start over with a new cluster of limits. There is absolutely nothing wrong with closing out safely. You'll be trading so frequently you aren't even a little bit obligated to let things "play out". Maybe you don't like how quickly the momentum built into your cluster, and it retraces down to the 50% area so you wanna break even, but then you start laying more limits above and below because you believe that momentum is likely to slow down. I'm gonna tear down a phrase that I'm sick of hearing: the trend is your friend . The trend could be the worst friend you've ever had. Sometimes he's really cool, and he's the life of the party. But he really likes hanging out with you, especially when nothing is going on. He really likes to wait! He doesn't exactly value your time, and he's perfectly content sitting in a chair next to you watching paint dry. He smacks the remote out of your hand when you try to turn on the TV. This trend guy can be a real jerk sometimes. You also suspect he might be bi-polar, because sometimes when you get excited to do things with him, his mood shifts the moment you open your mouth and suddenly the fun has been sucked out of the room. That is the trend. On some pairs like USD/JPY, a trend can go on for a very long time, and there's a lot of money to be made. The problem is it is speculative . You don't know where that trend is going to end. Nobody is clairvoyant, and most people will make incorrect guesses. If you simply remove this requirement of speculation, where you have to be "correct" in your guesses in order to make money, you will do better in almost any market. If your goal in trading is to make consistent money, then the trend is not your friend. He's an acquaintance at best. You have to associate with him in business and that's about it. You spend just as much time associating with the counter-trend, because you should be doing business with both of them constantly. Now, on the other hand, if your goal is to invest (AKA gambling), that's a separate concept entirely. You're trying to grow a tree from a seed when you invest, and there's nothing wrong with that. But most people cannot live off of it. You can't even order pizza with your investments until they come to fruition. A trader can make consistent money every single day, without knowing or caring where the market is going or what it's going to do. Price continues trend, price retests, trader makes money. Price reverses, price retests, trader makes money. That's it . No waiting for retarded "key support levels", no waiting for "confirmation", no speculation, no technical analysis. Just raw risk management, getting in and out of the market quickly and constantly. Now, the one downside to being this kind of trader is you generally can't do this easily with the basic tools provided by your platform, meaning you would need scripts, EAs or whatever in order to quickly deploy limit clusters. The tool I'm working on allows me to drag a horizontal line on the screen, and I have a panel of buttons that do interesting things. I can click "Sell limits" and a whole bunch of sell limit orders appear just above the line. I can move that line again and click "Adjust TP", and the take profits for all of those orders will appear right below the structural retest point I'm targeting. I have buttons to close profits, to close pendings, close all tickets... it's just the bees knees. This is an MT5 EA, which most people won't be using, but I trade on CryptoAltum so that's what I use. I will leave it here for free. Lastly, have some limit order porn. Every single rectangle is a place where you could've had limits that got filled and made money. On really strong trends, you might notice that the retracement only returns to around the 50% point of your limit cluster, but you'll notice how uncommon that is and how easily you could've gotten out with little to no loss. A lot of the time, I won't even restrict myself to structure (swing highs and swing lows) even though that's the most reliable way to do it. I'll literally just put limits above and below any wick because I feel like it and I can make a profit in all likelihood. ...Anyway. I hope you enjoyed this write-up. Leave a comment if you did, or have any questions!
Education
by WinkleTrades
The easiest way to make money tradingI'm going to show you one of the simplest, and most effective ways to trade. Period. Just about every other type of trading is speculation; this is not. This is making money regardless of where the market goes, and you don't even have to have a clue as to what the market is going to do next. I repeat: you do not need to know where the market is going to make money . In these pictures, every rectangle represents a cluster of small limit orders getting filled, with the anchor point (starting place) being a wick rejection. That's it! You'll notice that in almost all of those cases, the retracement from the limit block exceeds 100%, meaning 100% of the limit orders in that block are profitable. You only actually need to see the price retrace by 50% of that block to break even. This is why I laugh when people say "the trend is your friend". The counter-trend is your friend too. The market is your friend. You don't have to know where the price is going, and you can make money in either direction as long as you're placing your limit orders in a way that goes with the flow. You're trying to capitalize on liquidity 100% of the time, and liquidity is really, really common. You can literally place trades based on every single candle if you want to! If there is a wick, you can trade it. Even if you're wrong, having tiny limit orders spread out through a cluster based on that wick means your hard stop loss would be hit rarely. You should still definitely have a hard stop loss, just in case a doomsday scenario comes. So imagine you have a $2000 account. On a 1k (0.01 lot size), 10 pips is $1. Let's say you have 100 limit orders, separated by 1 pip each. 50 of your limit orders get hit, and then the price retraces by 50 pips. Given that your average entry point would be 25 pips (the halfway point), you would have made 25 pips profit on a 50k, meaning $125 profit on a very high probability trade. In those pictures, even the big moves don't hit all 100 of your limit orders, not at once. Not even 50 all at once. I'm not saying that doesn't happen obviously, but the probability of it happening is very low in relation to how frequently you'd be making profitable trades. So what you do is you either commission a script or write your own to deploy all these limits very quickly. I'm currently having one commissioned for me in MT5 which works very well. I can drag a horizontal line that serves as an anchor point, deploying x amount of limit orders with y distance between each other, z order sizes (0.01). I can even have them all share the same stop loss and take profit, or have SL/TPs a specific distance from each individual ticket. I'd show this stuff here, but TradingView doesn't like pictures coming from the outside. If you use metatrader 5 and would like my tools, feel free to message me. I'm not sure if I can edit this later, but I hope I can... I tend to rethink things a lot and hate having to finalize something. Anyway. I hope this helps.
FX:XAUUSDEducation
by WinkleTrades
10
Risk Management: Satefy Orders (Dollar Cost Average)I believe risk management is key, because sometimes, finding the perfect entry will not be enough. The market is what it is, and nobody can predict with 100% accuracy how the price will behave, even with all the great indicators we got out there. With that in mind, we should come prepared that the price will go against you, and we should take advantage of it, because most of the time it will bounce back up. This technique is especially useful in trading low timeframe also known as Scalping. The idea is to lower the inital entry order size , and split the remaining order size progressively through the safety orders as the price goes against you. This will make the total trade average entry - or break even - at a lower place than if you were simply trading the initial entry. That means the take profit will also be lower, because we can now take profit from the total order size/volume . Here is a simple example with a long: We buy in on the `LONG` label with 10% of our trade capital at around 9325$. Our take profit is 1.3% which makes a 9447$ target. But the price goes down, until it reaches our first safety order trigger line, at around 9231$. At this point we add 10% of our trade capital. It is the `DCA` label on chart. The break even line is now in the middle of the inital entry price and the safety order price, around 9275$. We still have our 1.3% take profit target, but it is now at 9396$ instead of 9325$. At last, the price bounces back up, as expected, and we take profit. Example with a short with 2 satefy orders: What are the risks? In the worst case scenario , which we know will happen at some point, the price does not go back up. It is important to know what are the risks so that we do no get liquidated or lose too much of our account. Let's dive into the numbers. We set up our strategy so that we have 3 satefy orders max, and the stop loss is on step below the last one. That makes 4 entries in total, and we decide to use 1% of our capital on each entry. Each step is seperated by 1% of the price to make things easier. When we hit stop loss, how many % do we lose? 1. On first safety order, price is down 1% and we traded 1%. That's 1% drawdown. 2. On second safety order, price is now down 2% for 1% of our order, and 1% for the other 1%. That is 1.5% drawdown. 3. Of the third safety order, we get 3% + 2 % + 1% = 6%/3 = 2% drawdown. 4. On stop loss, we get 4% + 3% + 2% + 1% = 10%/4 = 2.5% drawdown. => The price went down 4% but we only lost 2.5% of our inital capital. That is why we can say that safety orders reduce risk . /!\ Using leverage will multiply the risk. Using 2x we would have lost 5%. This can climb very fast, so be careful. One thing we can do when a stop loss is hit is to reverse our order, as most of the time our stop loss is hit because the trend is reversing. But again, be careful as it could cost you double.
BITMEX:XBTUSD.PEducation
by cyatophilum
5