Sell ​​limit.

When trading on the foreign exchange market, you can not only open forward transactions, but also place pending orders, which will work only when the required price level is reached; Sell limit is one of these orders. The features of its installation will be discussed further.

Sell ​​limit – a pending sell order, opens if the price reaches the specified value or goes above it.

Unlike the standard version of a pending sell stop order, in this case you are trading against the trend, expecting the price to rise to the level where the order is triggered, and then begin to fall in a lower direction again.

Setting a sell limit.

In order to place this order, you should press F9 or “Open order” in the trader’s trading terminal, then select the execution type “Pending order” and then “Sell limit”. Now you just have to set such parameters as “Trigger price”, it should be higher than the current one and the take profit and stop loss values. Then click the “Place order” button and wait for it to work.

Strategies using Sell limit.

This type of orders is placed if there is a downward trend in the market and pullbacks in the opposite direction are clearly visible. Therefore, setting the Sell limit will allow you to get much more profit than if the position was opened according to the standard scheme.

The sell limit is used when trading using a price channel strategy , in this case the order is placed at the resistance line, but the current position of the price on the chart should also be taken into account; it should be closer to the support line.

This will be the nearest price maximum, at the point of which the expected reversal in the direction of the existing trend will occur. Another option for using this order could be trading on a trend reversal.

To use it, you need to know exactly at what point an uptrend can turn into a downtrend and bring us profit. An important level, for example, the maximum price for the last week, could become such a point. These strategies are quite risky, since if after the sell limit order is triggered the trend still continues in its direction, the deposit may be drained. Therefore, when opening an order, do not forget to set a stop loss , it will allow you to close the position if the price does not reverse.