Closing Limit Order - best forex trading app for android

Closing Limit Order ~ best forex trading app for android

Closing Limit Order

There is another type of limit order that closes a transaction, and, often, it is listed simply as a limit order by the trading platform, but this is an order to close a transaction that has already been initiated. If the initial transaction was a buy, then the closing limit order will be a sell, and vice versa. It is not necessary to specify whether to buy or sell, since this will be determined by the initial transaction. It is only necessary to specify the price.

Closing limit orders are set to take profits, so if the quote currency was purchased, then the limit order will be higher than the purchase price; if the quote currency was sold, then the limit order will be less than the sale price. If the broker’s relevant bid or ask price never reaches your limit order, then the limit will not be triggered.

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Entry Limit Orders - forex trading app best

Entry Limit Orders ~ forex trading app best

Entry Limit Orders

An entry limit order is an order for a currency pair that is away from your broker’s bid/ask price. In other words, your limit order to buy is not your broker’s ask price, or your order to sell is not your broker’s bid price.

Your order does not compete with any other orders. Only your broker sees your order—no one else. So there is little point in trying to place an order inside the spread, where the transaction price—either a buy or a sell—is between the bid/ask price. Many trading platforms do not even allow such an order to be entered, but even if they did, the broker probably won’t complete the transaction unless the market moves enough in the direction of your order.

There are some forex brokers who are advertising a no dealing desk, where your order is shown to some banks that are in the broker’s network, and, in these cases, the trading platform does allow you to place an entry limit order inside the spread, but even this is not really effective, because only a few big banks see your order, and if it is a small order, they probably won’t have much interest. This is in contrast to an American stock exchange, where the best bid/ask prices from all participants is displayed in the system, allowing just about anybody to see those stock prices.

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