Market Orders

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.

Entry Orders

Entry Orders

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.