Hi
I am very new to Forex, I am trying to use the EMA indicators to deternine the etnry to sell or buy. I just have one simple question to ask, after we have detected the entry point, do we trade using “market order” or “pending order”? I was told to use “market order” but the rate for “market order” is fixed and it will not be the entry point that I have detected. What should I do, can you please enlighten me with steps. Thanks in advance.
Regards
Starry
Hi Starry
are taking the spread into account when placing market order ?
No, I did not consider the spread. I take into account the stop loss and take profit.
I am thinking that the difference is the spread. when you enter a trade you will always start negative as the spread is always taken first
Can give me an example? Sorry for my ignorant and appreciate your patient.
np Starry
depending on what pair you are trading there is a bid price and an ask price.
for example, if your broker has a spread of 5 on EURUSD and the current price is 1.4000 your market order will be filled at 1.4000 +/- 5 pips . effectively if you sell 1.4000 your orderis filled at 1.3995. price has to move in your direction by the ammout of the spread before you are at BE
hope that helps
best regards
dave
If you want to enter the market at a certain price (eg. If you want to sell EUR/USD once the price hits 1.5000, but its currently at 1.5100) then you would use pending order.
Market order is to enter the trade right now at the current price ( minus a few pips for the spread)