Order by limit.

When placing a new pending buy order in a trader's trading terminal, you always face the question of which order type to choose: buy stop or buy limit.

Order by limit (buy limit order) – allows you to buy currency below the current Forex price level. Placing this order may seem counterintuitive at first glance, but this action requires the use of a special trading strategy, which we will discuss below.

In order to place a pending buy limit order, you need to perform a few simple steps:

• Click on the "New Order" tab or F9 with the trader's terminal running.

• Set the trading volume and select the currency pair for which the deal will be executed.

• Operation type - place "Pending order", after which an extended menu will open for you, in which you select by limit.

• Execution price - this is the most interesting and unusual moment, here you should set the price lower than the existing one, otherwise the order will simply not be executed and you will receive a refusal to place it.

• Setting stop orders - after setting the trigger price, it is imperative to set the stop loss and take profit order values. Ignoring these orders usually leads to the draining of the deposit.

In this case, stop loss is set below the order trigger level, and take profit, accordingly, higher.

If you want to limit the validity of your order by time, you can also set the "Expiration" parameter, the date and time after which the buy limit order will cease to exist if it is not executed.

Strategy using a pending buy limit order.

Trading with a by-limit order is based on trading strategy , which assumes a certain price movement pattern. Price movements occur between support and resistance lines, bouncing off one of them and then reversing.

In our case, the primary reference point is the support line, and a pending order should be placed near it, anticipating a trend reversal toward an upward price increase for the Forex currency pair.

The key rule for using this strategy is the presence of an uptrend. Trading is conducted on so-called price pullbacks, with pending orders triggered at the low points of this movement.

Buy Limit allows you to take maximum profit from an existing trend movement, but it should be taken into account that in the event of an error or incorrect forecast, this operation can lead to losses.