Using pending orders when trading cryptocurrency
It has already happened that trading using a strategy on pending orders is one of my favorite options.
A pending order is an order to buy or sell on a trader's trading platform, which will be executed as soon as the price reaches the level you specify.
There are a lot of advantages to this strategy, and one of the main ones is that you don’t have to constantly sit in front of a computer monitor waiting for the right moment.
That is, thanks to this opportunity, you do not need to wait for the currency to start getting cheaper (more expensive), you just need to indicate the price at which you want to sell or at which you want to buy the selected asset.
Trading cryptocurrencies using pending orders becomes more efficient.
• Firstly, all operations are carried out in the trader’s terminal - http://time-forex.com/praktika/terminal-trejdera in which, unlike other options, there is still the possibility of insurance against risk if the price changes its direction.
• Secondly, you should use a broker who has the opportunity to trade cryptocurrency as an intermediary - http://time-forex.com/kriptovaluty/brokery-kriptovalut
After you have opened an account with the chosen broker, downloaded and installed the metatrader terminal itself, you can proceed directly to planning the transaction.
1. First, we find the desired crypto currency pair in the “Market Watch” window, in our case it will be Bitcoin/US dollar, which is designated as BTCUSD and add a chart window:
2. Then, on the currency pairs tab, open our BTCUSD chart, click on the “New Order” button on the top panel and make all the necessary settings:
In our case, the price is at $9,310 per bitcoin, we want to buy the cryptocurrency at $10,000 per unit, since in this case there is a high probability that the price will continue to rise further.
Let’s select in the settings:
- Order type – Buy stop, that is, an order to buy at a set price
- Volume – the number of bitcoins you plan to buy
- Price – upon reaching which a deal will be opened
- Stop Loss – a safety order that will close the deal if the price starts to fall
- Take Profit – the price at which the transaction will be closed with a profit.
After all the settings have been selected, click “Set” and see:
Two lines appeared on the chart of the BTCUSD currency pair, indicating our order, the dotted green line is the trigger price and the dotted red line is the Stop Loss .
In addition, at the bottom of the terminal there is data on the order itself and your account.
And if you hover your mouse over this order, right-click and select “Edit or delete”, then you will have the opportunity to edit the pending order - delete, change the volume, change stops. You can also limit the validity period of the order, for example, one week. Now all that remains is to wait for the price to reach the set level and your pending order to be triggered, and it is not at all necessary to leave the computer on; the order will be executed even when the trader’s trading terminal is turned off.