Market Execution vs Pending Indices Order
There are different types of stock indices orders which a trader can use to trade in Indices.
The most important thing to remember about stock indices orders is this: Always understand the stock indices orders you place when indices trading. Never place a stock index order which as a trader you are not entirely knowledgeable about. Below are the some basic definitions and explanations of the commonly used indices orders - types of indices orders explained:
Types of Indices Orders
Market Execution Stock Indices Order
This is the most basic type of stock indices order, Market Execution Order is used to buy or sell at the current ask or bid indices trading quote stock indices price. This Market Execution Order refers to the quoted stock indices price that appears on your indices trading platform.
This type of stock indices order - Market Execution Order - is used for buying or selling at the current price indices trading quote in Indices Trading, the execution of this stock indices order is instant. The minute you want to enter a position you can buy and sell indices at a click of a button key using a indices trading Market Execution Order - also known as a Market Order or Market Instant Execution Order.
Pending Indices Orders
These are stock indices orders used to open a new indices trade position after the stock indices market reaches a indices price specified by the trader.
Pending Indices Orders are used to buy or sell indices when the price attains a certain stock indices price target.
When a specific stock indices price level is reached or broken then a indices trading Pending Indices Order is executed.
These Pending Indices Orders are used to enter a indices trade at a specified stock indices price level. It is almost impossible to monitor the stock indices market every second & this is why a Pending Indices Order can be useful when trading indices. If you feel the stock indices trading market might take a certain action, such as break through a particular stock indices price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Stock Indices Order - Pending Indices Order. Once the stock indices trading market crosses your specified level, your entry limit indices trading order is executed.
There are two types of Pending Indices Orders - Entry Limit Stock Indices Order & Entry Stop Indices Order.
These Pending Indices Orders are also referred to as Entry Limit Indices Orders or Entry Stop Indices Orders.
Entry Limit Stock Indices Order
An order to buy or sell at a specific limit.
An Entry Limit Stock Indices Order - Pending Indices Order can be used to buy below the current stock indices price or sell above the current indices price.
When buying, entry limit stock indices order is executed when the stock indices price falls to your limit level stock indices price.
When selling, entry limit stock indices order is executed when the stock indices price rises to your limit level stock indices price.
These Entry Limit Stock Indices Order - Pending Indices Orders are placed by indices traders when they expect the stock indices trading market to bounce back after reaching the stock indices price level at which the entry limit stock indices order was placed.
- Buy Limit Stock Indices Order - Pending Indices OrderSpecifies to buy at a level below the current stock indices market indices price
- Sell Limit Stock Indices Order - Pending Indices OrderSpecifies to sell at a level above the current stock indices market indices price
Entry Stop Indices Order
An entry stop pending order is an order to buy above current stock indices price or to sell below the current stock indices price.
When buying, entry stop order pending stock indices order is executed as the stock indices market goes up & hits buy stop level.
When selling, entry stop pending order pending stock indices order is executed as the stock indices trading market goes down & hits the sell stop level.
- Buy Stop Stock Indices Order - Pending Indices OrderSpecifies to buy at a level above the current market indices price.
- Sell Stop Stock Indices Order - Pending Indices OrderSpecifies to sell at a level below the current market indices price.
