|Market order||A market order is a trader’s instruction to enter or exit a trade at the best available price. Market orders include Buy limit, sell limit, buy stop and sell stop orders to enter a trade, stop loss, trailing stop, take profit, good-till-canceled, and good for the day orders to exit, One-cancels-the-other (OCO) and one-triggers-the-other (OTO) orders combine an entry order with an exit order.|
In this video we will be covering the different types of ENTRY orders
So what is an entry order
An entry orders is a market order that opens at a specific price in the future
It is a pre-set order and will only be executed if the market reaches that price
There are four types:
Entry Stop buy orders, Entry Limit buy orders, entry stop sell orders and entry limit sell orders
Ok lets’ start with an Entry-Stop Buy Orders & Entry-Limit Buy Order’s
An entry stop buy order is like a pending order that will open a BUY position at a price above the current market price.
Lets say the current market price is $1,390
We set an Entry-Stop Buy order at a price of $1,410 instead of executing a market order buy trade now. We believe that the price will rise but wish to wait until it reaches that price before entering a buy trade. So our entry buy order is set above the market price. If it hits this level the trade will automatically open a buy position at this pre-set price. If it does not hit this price the order will not be executed.
An entry-limit buy order is similar to an entry-stop buy order except we simply set an order to buy BELOW the current market price of $1,390. An entry-limit buy order is useful if we think that the price will fall first before rebounding back
Next is an Entry-Stop Sell Order
An entry-stop sell order enables us to place a sell order BELOW the current market price. Our order will become active if the price is hit.
In this chart the current market price is approximately $1.3000 We believe the market will fall from this price but we want stronger confirmation that the sellers are in control so we don’t execute a sell market order now instead we set an Entry-Stop Sell Order at 1.2900. If the price falls to 1.2900 our sell order will be executed
Our last order is an Entry-Limit Sell Order. An entry-limit sell order would be the opposite and allows you to place a sell order above the current market price. Again it will be a pending order and will not be executed unless the market reaches this price.
What have we learned?
Entry Market orders are orders that open a position at a specific price level in the future
- They can be pre-set and will only be executed when the market reaches this price.
- Entry stop buy orders will open a BUY position at a price ABOVE the current market price
- Entry limit buy orders will open a BUY position BELOW the current market price.
- Entry stop sell orders enables us to place a sell order BELOW the current market price
- Entry limit sell orders allow us to place a sell order ABOVE the current market price.