Stop limit order

Stop limit order

Stop limit order

Often, the market price of the asset in question may not suit the trader. In order not to sit at the monitor for hours on the fly, waiting for the price to reach the goal, traders came up with pending orders.

In this article, we will review Stop Limit requests. We will also consider the stop limit in Quik.
What is a pending order in Forex?
A trader's request to sell or buy when the price reaches a certain price level is called a pending Forex order.

Simply put, when the price rises or falls to a specific price level, then pending orders will be activated.

Let's look at the main types of pending Forex orders. This will help you not only quickly set a Stop Limit order, but also know where to apply the remaining “deposits".
Types of pending orders

There are four types of pending orders:

Buy Stop. When the price reaches the "Ask" value set by the trader, the pending Buy Stop order will be activated. The actual price will be less than the set level. As a rule, these “deposits“ are set based on the fact that the price will reach a certain level and continue its upward movement in the future.
Buy Limit. When the current price reaches the "Ask"price value. Often this type of pending order is used in the hope that the price will fall to a certain value and then show growth. The current price is higher than the set level.
Sell Limit. When the "Bid" price is reached, the "delay"is activated. This type of pending order is placed on the assumption that the price will decrease after it rises. The current price is below the specified level in “pending orders”.
Sell Stop. If the price reaches the" Bid " value, the pending order is activated. In this case, the current price will be higher than the set “delay". Often, such orders are placed in the expectation that the price will reach a certain level, and then continue to decline.

Note that in the MT4 trading terminal, you can use two main types of pending orders: limit and stop orders.

If we talk about limit orders, they involve selling or buying at a better price than at this time. These include the sell limit and Buy limit, as well as Take Profit. When considering stop orders, they mean buying or selling at a less favorable price than the current one. These orders include sell stop, Buy stop, and Stop Loss.
How do I set a stop limit in Quik?

Before you tell us how to place an order in the Quik trading terminal, we will first explain what a stop limit order is.

Stop limit refers to stop orders and if you execute a limited order, the trader will be able to limit the amount of losses if the forecasts are not justified. And the price will not move in the right direction for the trader.
So, you can set a stop limit in Quik in various ways:

press the F6 key;
using the button on the toolbar;
by double-clicking on the left mouse button in the “table of stop orders”;
select “New stop order” in the table of the context menu item;
through the General method of performing transactions with the indication of the “Stop order " operation.

When the window opens, you will need to fill in the following fields:

“Stop order type "– select from the "Stop limit" list.
“Expiration date " – use a dot to indicate how long you want to set the stop limit in Quik. If you select “Today”, the limited order will be valid until the end of the day. If you select “By”, it will be valid until the date that is selected by the trader. “Until canceled " – the stop order will be valid until it is canceled.
“Instrument " – select from the drop-down list the financial paper for which the stop limit will be set.
“Order activation condition” – if the trader is in sales and he needs to urgently reduce losses with a rapid increase in the price, select “Buy”, and in the field set “stop limit if price >=” enter the value of the stop price at which this stop order will be activated. If the order is opened based on a long position, and you need to urgently reduce losses when the asset price falls, then you need to select “Sell” and in the “stop limit if price <=” field set the stop price level at which this stop order will be activated.
“Price " – this value will be used to execute Your request.
“Quantity” – the number of securities expressed in lots.
“Client code " – used to identify the client in the system (this item can be ignored).
“Order " – we use the text to comment on the request (optional).

Above, we told You about the types of pending orders that are used in Forex. We also explained how to place a stop limit order in the Quik trading system.

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