For most traders, getting into the market is a process that requires seeing an opportunity to enter, or reading about breaking news and jumping on it. This requires opening a position at that time and being physically in front of their computer or on their mobile. What if there was a way to get into the market when you’re away from your trading station?
What if your technical analysis shows the EUR/USD will fall once the pair reaches a specific price level? The ForexYard trading platform has the tools to get you into the market; however, many traders are reluctant to use these options at their disposal.
By using the tools below, a trader can enter the market when a certain price is reached without having to be at their computer to do so.
An Entry Limit Order is used when a trader would like to enter the market at a price below the current market price for a Buy, or above the market price for a Sell order.
In other words, an Entry Limit Order is used when a trader believes the price will reverse its direction once a certain price level is reached.
For example, if a trader believes the EUR/USD is overvalued at the price of 1.5000, and the current market price is 1.4950, he can place an Entry Limit Sell order. When the price hits the 1.5000 mark, his order will be executed.
An Entry Stop Order is used when a trader would like to enter the market at a price above the current market price for a Buy or below the current market price for a Sell.
In other words, an Entry Stop Order is used when a trader believes the price will continue moving in the same direction once a specific price is reached.
For example, if the price of gold is trading at $975 and a trader believes that if gold crosses the psychological price level of $1000, the price will continue to rise. The trade to make is an Entry Stop Buy at, or slightly above $1000.
These tools can be used for a number of reasons; whether you’re away from your trading station because you’re at work, or sleeping, you can always open a position. If through your technical analysis, you believe a currency pair is going to break out when it arrives at a specific price, place an entry order to get into the market!