Pending Order

Pending Order: An order that executes only when an asset price reaches a certain level. A pending order can open a buy or a sell order and discern whether the price rises or falls to the required level.

Entry Orders

Entry Orders - text

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.