swing trading - xmpending order is the client's commitment to the brokerage company tobuy or...
Post on 24-Feb-2020
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Market order is a commitment tothe brokerage company to buy orsell a security at the currentprice. Execution of this orderresults in opening of a tradeposition. Securities are bought atASK price and sold at BID price.Stop Loss and Take Profit orders(described below) can beattached to a market order.
Pending order is the client'scommitment to the brokeragecompany to buy or sell a securityat a pre-defined price in thefuture. This type of orders is usedfor opening of a trade positionprovided the future quotes reachthe pre-defined level. There arefour types of pending ordersavailable in the terminal:
TRADER A
Has $5.000 in his account
TRADER BHas $5.000 in his account
Buy $100,000 @1.3500
1.3450Loss=$500
1.3200Loss=$3000
1.3000Loss=$5.000
Day 1
Day 2
Day 3
out of market
out of market
Day1
Day 2
Day 3
Buy $50,000 @1.3500
1.3450 Stop Loss LevelLoss = $500
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382.0377
144
236.0377
89
618.0618.0
382.0
618.0382.0
236.0
618.089
55
618.1233
377
618.2144
377
236.489
377
618.0618.2
618.1
618.0236.4
618.2
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