What is the difference between a market order and a pending order?
A market order is a buy or sell order that is executed immediately based on the latest or best market price in the market. The advantage of market orders is that in a volatile market environment, traders have the opportunity to earn higher returns. The main disadvantage is that the trader spends a lot of time paying attention to the depth of the market and price fluctuations, so as not to deviate from the ideal price of the final transaction price, and the other is that the trader cannot set stop and take profit prices for the market order.
Pending Orders are orders or sell orders that a trader has specified in advance, a price that is different from the current market price. The advantage of pending orders is that traders can set the order execution price in advance to automatically open or close positions, which is also more advantageous than market orders to avoid slippage, and can cancel pending orders before pending orders are sent to the market. The disadvantage is that traders need to have a certain understanding of the market, to avoid a sudden change in the market.
Simply put, the biggest difference between a market order and a pending order is the execution time of the order, which is executed immediately, and the latter is to meet certain conditions before executing.
Four pending orders: Stop-loss buy, stop-loss sell order, limit order, limit selling order, what do you mean?
Four types of pending orders can be divided into two categories: stop-loss pending orders and limit pending orders. Stop Orders (Stop Order) are pending orders used by traders as they believe that a market is about to break through (continuing to rise in an uptrend or falling in a downward trend).
- Buy Stop: Set a buy order above the current market price.
The current USD/JPY quote is 101.687 and the bid price is 101.702, and the stop-loss buy price you set must be higher than 101.702. Assuming your buy stop price is set at 102.000, once the current market bid price rises to 102.000, the trading system will automatically open a position for you to buy USD/JPY. This is a way of pending a long break.
- Sell Stop: Set a Sell order below the current market price.
The current USD/JPY quote is 101.687 and the bid price is 101.702, and the stop-loss sell order you set must be below 101.687. Suppose your stop-loss buy price is set at 101.600, once the current market ask price falls to 101.600, the trading system will automatically open a position to sell USD/JPY for you. This is a form of pending orders for waiting for a short break.
Limit Orders are designed to find better entry prices, which can be divided into "limit orders" and "limit orders" based on traders being bearish or bullish on current market prices.
- Buy Limit: Set a buy order below the current market price.
If the current EUR/USD quote is 1.36353 and the bid price is 1.36370, the limit purchase price you set must be less than 1.36370. Suppose your limit purchase price is set at 1.36100, and once the current market bid price falls to 1.36100, the trading system will automatically open a position to buy EUR/USD for you.
- Sell Limit: Set a sell order above the current market price.
If the current EUR/USD quote is 1.36353 and the bid price is 1.36370, the limit price you set must be higher than 1.36353. Suppose your limit selling order price is set at 1.37000, once the current market selling price rises to 1.37000, the trading system will automatically open a position to sell EUR/USD for you.
Do you provide trailing stop?
Our MT4 platform offers trailing stops.
Trailing stop is also known as move stop, when the market price moves in its favor, the stop-loss function in the MT4 trading system automatically adjusts the stop-loss point that the trader originally set to help the trader lock in the profit.
Assuming that the current EUR/USD quote is 1.36310 and the bid price is 1.36340, you set up the order at the price of 1.36340 and set the stop price at 1.36000 and the trailing stop to 20 points.
- When EUR/USD rises to 1.36540, the stop loss level rises automatically from 1.36000 to 1.36200.
- When EUR/USD rises to 1.36550, the stop loss level rises automatically from 1.36000 to 1.36200.
- When the EUR/USD price starts to fall to 1.36100, the stop loss price of 1.36000 remains unchanged.
- When the EUR/USD price reaches the stop price of 1.36000, your position is automatically closed.
Why isn't my stop order executed at the stop price I set?
Our MT4 platform does not provide guaranteed stop loss. In extreme market conditions, high market volatility, or low market liquidity, your stop order may not be executed at the specified price, but at the next available price.
I intend to close my trading account and what will be handled of the open orders in the account?
We encourage you to manually close all positions before closing your trading account, and when the trading system settles your profit and loss, you can request a withdrawal to recover all profits. If you delay the manual closing of your position, the unclosed order will continue to be placed in the market and experience profits or losses resulting from market fluctuations until the position is opened or you log into the trading account again and manually close the position.
What will my order do if I do not close my position before the CFD expires?
If you are not able to close your position before the CFD expires, our system will settle your open contract at a clearing price after the contract expires. The clearing price does not necessarily appear in the MT4 price chart, and we cannot guarantee that the clearing price of the order is the best price in the market, so we encourage you to pay more attention to the expiry time after the spread and close your position at the expiry date to avoid unnecessary losses.Please note that all contracts expire at Greenwich Mean Time (GMT) and must be added to taipei time by 8 hours.
Can I just close some of the positions?
Yes, our MT4 trading system provides partial closing. Suppose you hold a 3 lot EUR/USD selling order and want to level out 1 lot of EUR/USD, the following is done:
- Click on the 3 lotS of EUR/USD selling order;
- Press the right mouse button, and then select "modify or delete orders", the order window will pop up;
- Change the type of transaction from "modifying order" to "market deal";
- Select the Volume of 1.00;
- Press the yellow close button.
Please note that the number of lots partially closed must be lower than the number of hands in existing positions.
I've locked all the orders, why am I forced to close the position?
Our MT4 trading system will only perform forced closing positions if the account margin ratio (also known as the prepayment ratio) is less than 50%. Long and short lock order can cause the closing of position due to following three common factors.
- Overnight interest:
Although long-short lock orders do not take up any margin, long and short orders will still generate overnight interest, holding positions too long will generate considerable overnight interest, which in turn will affect your net account value and margin ratio.
- Spread widening:
The bid-ask spread of trading products will be widened by factors such as soaring market volatility and lack of market liquidity, further resulting in greater losses on orders that are already in a loss-making state, resulting in a decrease in net account value.
- Increase in point value:
Changes in the exchange rate of certain currency pairs will cause changes in pip value (the value of each pip). For example, when USD / JPY is at a price of 120.00, the value of each pip is about $ 8.3; when the price of USD / JPY drops to 100.00, the value of each pip rises to $ 10, and the value of the pip rises by $ 1.7 This will increase the loss of orders that are already in a loss state, resulting in a reduction in the account's net worth, and jointly reduce the available margin and margin ratio.
What is one-click trading? How can I open this function?
One-click trading option allows performing trade actions to be done with a single mouse click. When choosing to use one-click, special terms and conditions apply. When using the one-click option, trade operations with will be performed without additional confirmation from the trader.