XAU USD Orders

There are various types of Gold trading orders which a xauusd trader can use to trade XAUUSD.

To trade Gold successfully a gold trader need to learn about the various orders which are used when it comes to trading XAUUSD. A trader must learn each type of trading order so that they can use it for its correct purpose. The most important thing to remember is that you must understand the orders that you place when trading XAUUSD, and never open an order that you're not familiar with.

Below is a listing of basic definitions of the trade orders which are commonly placed in the market when trading Gold metal online.

Market Order

Market order is the most basic order that is used to trade gold. This order is used to buy or sell at the current bid or ask quote. This is the price that is currently appearing on your trading software.

This order is used for buying and selling according to the present price that is quoted. The execution of this trade order is instant - the moment that as a trader you want to buy or sell you can place this order to enter a trade by buying or selling at the current market price at the press of a button.

Entry Orders

These orders are used to open a new trade after the market price has reached a price specified by the trader.These orders are used to buy/sell Gold when the price of Gold attains a certain price target - after which when this price is attained then the entry order gets executed.

These orders are used to enter a trade at a specified price level. Because sometimes a trader might not have the time to monitor the market all the time then a xauusd trader will set these entry orders so that when a particular price level is reached then the specified order will be executed automatically & a buy or sell trade will be opened.

If a trader feels that the market will go in a particular direction - such as the current trend continues moving in the same direction or analyzes that the support or resistance level of XAUUSD will hold, then the trader has the option of using these entry orders to specify which trade is to be opened & at what price the trade position is to be opened.

These orders also are referred to as pending orders because they do not get executed immediately but are kept pending until the price of Gold attains a specified price.

There are two categories of entry orders, these are:

Entry Limit
Entry Stop

Entry Limit

An order to buy/sell Gold at a particular limit.The limit can either be below or above the current price.

A limit that is below the current price is used for buying
A limit that is above the current rice is used for selling

These orders are set by traders when they expect the market to bounce back after reaching the level at which the entry limit was placed.

Buy Limit Order specifying to buy at a level that's below the prevailing market price.

This order is set by a trader who wants to buy XAUUSD, but does not want to buy at the current price but wants to wait until XAUUSD touches a support level - and buy the Gold once price hits this support area. To do this a xauusd trader will set the Buy Limit at this Support Level that's below the market price.

This order will be executed once price fall to the buy entry limit level.

Sell Limit Order specifying to sell at a level that's above the prevailing market price.

This order is set by a trader who wants to sell XAUUSD, but does not want to sell at the current price but wants to wait until XAUUSD touches a resistance area - and sell the Gold once price hits this resistance level. To do this a xauusd trader will set the Sell Limit at this Resistance Level that's above the current price.

This order will be executed once price rises to the sell entry limit level.

Entry Stop

An order to buy above the current price that is continuing to move upwards or sell below the current price that is continuing to move downward.This orders are set when a xauusd traders feels that current market trend is going to continue, but the traders want to buy at a higher price maybe after a price break out or sell at a lower price after a price breakout.

Buy Stop Specifies to buy Gold at a level above the prevailing market price.

When buying this order is executed as the market goes up and touches the buy stop entry level.

Sell Stop Specifies to sell XAUUSD at a level below current price.

When selling this order is executed as the market goes down & hits the sell stop entry level.

These orders are also used to trade the market when there is a consolidation pattern. A trader will place an order to buy above the consolidation pattern & also another order to sell below the consolidation pattern.

In the next tutorials we shall look at how to set these Entry Limit and Entry Stop Orders when trading XAUUSD online.

Learn More Tutorials and Lessons:

Trade Gold Trading

XAU USD Orders

Market Order

Entry Orders

Entry Limit

Entry Stop