Orders
There are different types of orders which a trader can use to trade in Commodities.
At the foundation of successful commodity is making use of the correct order for its correct purpose. Most important things to remember about is this: Always understand the orders you place. Never place a commodity order which you as a trader are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of orders:
Types of Market Orders and Commodity Pending Trading Orders
Market Trade Order
This is the most basic type of order, market order is used to buy or sell at current request or bid commodity quote commodities trading price. This refers to the quoted commodities trading price which pops up & is shown & displayed on your commodities platform.
This type of order is used for buying or selling according to the present exchange rate quotation in Commodities, the execution is instant. The min you want to enter a position you can buy & sell the commodities at a click of a button using a commodity market order.
Entry Commodity Trade Orders
These are orders used to open a new trade after the market reaches a price specified by the trader.
Entry orders are used to buy or sell a commodity instrument when it attains a certain commodities price target.
When a specific commodities price level is reached or broken then a commodities entry trade order is executed.
These Entry Commodity Orders are used to enter a commodity trade at a specified commodities trading price level. It's almost impossible to monitor the market every second and this is why an entry order can be handy. If you feel the market might take a certain action, such as break through a particular commodities price level that it has been touching but it hasn't been able to break, you would want to use an Entry Limit Trading Order. Once the market crosses your specified level, your entry limit commodities trading order is executed.
There are 2 different types of entry orders - limit order and stop entry order.
The entry orders are also referred to as pending commodities trade orders.
Entry Limit Trading Order
An order to buy or sell at a certain limit.
An entry limit order can be used to buy below the current commodities trading price or sell above the current commodities price.
When buying, entry limit is executed when the commodities trading price drops to your limit zone that you have set.
When selling, entry limit is executed when the commodities trading price rises to your limit zone that you have set.
The Entry Limit Trading Orders are placed by commodity traders when they expect the market to bounce back after reaching the commodities trading price level at which the entry limit was placed.
- Buy Limit Trading OrderSpecifies to buy at a level below the current market commodities trading price
- Sell Limit Trading OrderSpecifies to sell at a level above the current market commodities trading price
Entry Stop Trading Order
An entry stop order to buy above current commodities trading price or to sell below current commodities price.
When buying, entry stop order is executed as the market moves upward & hits buy stop level.
When selling, entry stop order is executed as the market moves down & hits the sell stop level.
- Buy Stop Commodity Trading OrderSpecifies to buy at a level above the current market commodities trading price.
- Sell Stop Trading OrderSpecifies to sell at a level below the prevailing market commodities trading price.
What is a Trading Plan? - Writing a Trading Plan Example
Alternatives: EA Automated Robots or Copier Trading Signals
