Entry Limit CFD Orders: Buy Entry Limit and Sell Entry Limit

Limit order definition - Entry limit is an order to buy or sell a CFD Trading at a certain cfds price which is a retracement level where cfds price is predicted to pullback to before resuming the original CFD trend. CFD traders use them to buy or sell at better market cfds price. These types of orders are provided for in most online platforms, for our example we will use MetaTrader 4 cfds trading platform.

An entry of this type can be used to buy below the cfd market level (up cfd trend market retracement) or sell above the cfd market level (down cfd trend cfd market retracement).

Buy limit - When buying, your entry buy limit is executed when the cfd market falls to your set cfds price. ( retraces down )

Sell limit - When selling, your entry sell limit is executed when the cfd market rises to your set cfds price. ( retraces up )

Entry orders are placed by cfd traders when they expect cfds price to bounce back after reaching this level.

• Entry Buy Limit CFD Orderbuy at a level below the current market price.

• Entry Sell Limit CFD Ordersell at a level above the current market price.

Buy Entry Limit Example

In the cfd example shown below, the buy limit cfd order was placed to buy at a cfd price below the current market cfds price. Point Marked B is the point at which it was set.

Limit buy order entry placed to buy below the current market cfd price

The cfds price then retraced and went down to hit buy entry limit, and afterwards cfds price continued to move upwards in direction of the original CFD Trading upwards cfds trend. When limit buy order was hit it changed in to a buy.

CFD Price hits buy limit, order now changes to a buy

Sell Entry Limit CFD Order

In the cfd example shown below a the sell entry limit was placed to sell at a cfd price above the current market cfds price. This is the level for the cfds price retracement.

Entry limit sell order placed to sell above the current market cfd price

The cfds price then rallied, went up to hit sell entry limit, and afterwards cfds price continued to move downwards in direction of the original CFD Trading downwards trend.

CFD Price hits sell limit, order now changes to a sell

When cfd quote hit the set level the order changed to a sell, this is therefore a nice technique to buy or sell at a better cfds price after a retracement.

Setting Buy & Sell Limit CFDs Orders in MT4 Platform

To set up these cfd orders in MT4 platform, Right Click on CFD Trading chart>>> Select 'Trading">>> Then Select "New'>>> Then on the pop up that appears (illustrated & shown below), under label "Type" select option of "pending" instead of "market execution">>> Under the pending cfd order options select the pending cfd order type: For This trade select either "Buy Limit CFD Order" or "Sell Limit CFDs Order" depending on whether you want to place a pending buy or sell.

Setting Buy and Sell Limit CFDs Orders on MT4 Platform

Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibonacci retracement indicator and use the 38.2 % retracement levels. This retracement level is watched by many cfd traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fibonacci retracement level.

Fibonacci Retracement Tutorial - CFDs Fibonacci Retracement Guide

Tip: In CFD online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on CFDs Fibonacci Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.

CFD Fibonacci Expansion Tool Tutorial - CFD Fibonacci Expansion Tool Guide