BindalFX 4x4u.net        Online Trading    
 

Placing Orders

What are Market Orders?

Market order is the simplest order. In a market order, the investor places the order and the broker will attempt to fulfill the order at the market price. There can be no guarantee that a market order will be executed expediently. The order may take some time to be executed if the liquidity is very low. In certain markets such as commodities and futures, market orders are fulfilled almost immediately. Market orders have several variations, including MOC, or Market on Close; MOO, or Market on Opening; and MIT, or Market if Touched.

What are Buy Stop Orders?

A Buy Stop order is an order to buy a security at a specified price above the current offering price. When the specified price is reached, the order becomes a market order. The order is entered at a stop price that is always above the current market price. It is used when buying stock to limit a loss or protect a profit on short sales. Investors using a buy stop hope to gain if momentum gains on a particular stock.

What are Limit Orders?

Limit orders are orders to buy or sell the securities at a pre-set designated price or better. Limit orders can be set up to expire at the end of the day, end of the week, end of the month, or never. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Sometimes, a limit order may never be executed because the market price may quickly surpass the pre-set designated price before the order can be filled. Limit orders are used for protection from buying the stock at too high a price.

What are Stop Losses?

Stop loss orders are used to limit potential losses and minimize risk. It is an order to buy or sell a security once the price of the security reaches a specified price. When the specified price is reached, the stop loss order becomes a market order.

EXERCISE

If you're extremely new to trading we suggest at this point opening a demo account. This will enable you to get a feel for the different types of market orders.

However you can wait until after the trading system builder section, it's up to you.

Visit Tools and Resources for links to suggested Demo Trading Accounts

 


 

 

Move on to Step 4 - Module 1 > Charting Basics

 

  

____Step_1____
Welcome
Binding Agreement
____Step_2____
Your Trading Business
□ Trading Styles
□ Objectives
□ Business Resources
□ Business Assets & Liabilities
____Step_3____
Market Basics
□ Stocks
□ Forex
□ Futures
□ Options
□ CFDs
Trading Basics
□ Reading Price Charts
□ Types of Markets
□ Types of Trading
□ Placing Orders
____Step_4____
Charting Basics
□ Pivot Points
□ Trend Points
□ Isolation Points
□ Real Bars
□ Summary & Test
□ Answers
Trading System Builder Tool Kit
□ Trading Rules
□ -1 Trend
□ _Moving Averages
□ _MACD
□ _Trend Lines & Channels
□ -2 Trigger
□ _Moving Averages
□ _MACD
□ _Stochastic
□ _RSI
□ _Bollinger Bands
□ _Fibonacci
□ _Support & Resistance
□ _Trend Lines
□ _Divergence
□ _Volume
□ _Price Bar Patterns
□ _Breakouts
□ _Which Triggers To Use
□ -3 Trade
□ -4 Terminate
□ _Initial Stop Loss
□ _Exit Strategy
□ -Filters
____Step_5____
Risk Management
Back Testing & Evaluation
Running The Business
Additional Tools & Resources
Resources