💸Transactions and the logic of orders placement
How to realise order placements and use different order types
For opening a transaction or place any type of order one uses the hotkeys.
Logic of orders placement
Logic of orders for the Long position:
Stop-Loss is less then the opening price Long
Take-Profit is greater then the opening price Long
Logic of orders for the SHORT position:
Stop-Loss is greater then the opening price Short
Take-Profit is less then the opening price Short
Automatic change of the order volume TP/SL
A TP/SL order is placed additionally to an existing position. Therefore, if the position volume increases, then the volume of TP/SL orders also increases. If the current position is closed independently (without TP/SL) then applications are canceled.
Stop-Market and Stop-Limit orders
Stop-order is triggered when the price reaches a certain level (above or below a specified point). One deals with a Stop-Market and Stop-Limit orders. The first ones are executed according to the market and the second ones as limit orders.
Stop-Market orders can be: -– buy-stop (order to buy) and sell-stop (order to sell).
Buy-Stop order is placed when it is assumed that the price located at a certain level will continue to rise. Buy-Stop is placed in the seller zone and a purchase occurs if the price arrives a given level.
Sell-Stop is placed when it is assumed that the price located at a certain level will continue to fall. Sell-stop is placed in the buyer zone and a sale occurs if the price drops to a specified level.
Stop-Limit orders can be: -– buy-limit (order to buy) and sell-limit (order to sell).
Buy-Limit order is placed when the price is expected to fall and then bounce off a support level and begin to rise. Buy-Limit is placed in the buyer zone, less then the current market price. A purchase occurs if the price drops to the specified level.
Sell-Limit is placed when the price is expected to rise and, having reached a certain level, begin to fall. Sell-Limit order is placed in the seller zone, greater then the current market price. A sale occurs if the price rises to a given level.
Buy-Stop, Sell-Stop, Buy-Limit and Sell-Limit – these are pending stop-orders that are not related to an open position.
Last updated
