Let’s be honest, trading can get very technical. In order to have satisfying outcome a trader needs to adopt several analytical strategies. As well as a particular trading strategy. But at the bottom line, even with all the necessary knowledge, the large portion of success relies on the available tools.
The Forex market has a tendency to fluctuate. If you take a specific currency pair and observe it for several hours you will notice that change. Now, in order to make profit a trader needs to make a purchase when the price is low, and respectively make a sale when the price gets higher.
Due to the nature of the market it is nearly impossible to do the right thing on time. Here is where buy and sell limits come in.
To better understand what is a sell limit order in Forex picture a currency pair. Let’s say EUR/USD. If the current price for the pair is 1.1144 you need it to get higher to make a profit. For example, you would like to sell when the rate reaches 1.1154. The range between the current price and the desirable one is your sell limit. Or in other words, it is a pending order placed above the market price.
Now, what is the sell stop order in Forex ? It is a pending order placed below the market price. Depending on your desired outcome the sell stop and sell limit can be beneficial according to the situation.
How to set a sell stop limit order in trading
If you wonder how to sell stop limit order in trading view you might also consider getting familiar with the concept of Forex one click trading. The so called instant execution will let you perform a trade at the current market price.
Now, since we have covered the selling let’s also establish what is a buy limit in Forex trading. As you might have guessed from the name it is a pending order placed below the market price at which the trader wants to buy the assets. It is set up similarly with the sell limit and differs simply by the action you want to take.
Another handy tool to master is stop loss. While pending orders allow you to trade at desirable rates, stop loss is reducing the losses during this process. This can also be automated using the FX trailing stop tool. It can be very helpful when the price keeps moving in the same direction or when the trader is not able to observe the market constantly.