Buy Limit confusion on Metatrader 4 | Forex Factory

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Buy Limit confusion on Metatrader 4

  • #1
  • First Post: Apr 13, 2013 6:04am Apr 13, 2013 6:04am
Hi everyone, I've placed an order to buy limit for USD/JPY at 98.05, I would appreciate it if someone can tell me if the market opens let's say lower than 98.05, and I get filled of my buy limit. Would my execution price stay at 98.05 or would it be the physical market price?

Also, I have been trying to alter my order, however, since the market is closed it couldn't be done. Does anyone know in anyway when I can change or cancel my order earlier than the market opening?

Would appreciate it a lot if someone could answer me.
  • #2
  • Apr 13, 2013 8:32am Apr 13, 2013 8:32am
Quoting cloudstr1f3r
Hi everyone, I've placed an order to buy limit for USD/JPY at 98.05, I would appreciate it if someone can tell me if the market opens let's say lower than 98.05, and I get filled of my buy limit. Would my execution price stay at 98.05 or would it be the physical market price? Also, I have been trying to alter my order, however, since the market is closed it couldn't be done. Does anyone know in anyway when I can change or cancel my order earlier than the market opening? Would appreciate it a lot if someone could answer me.
If the market open below 98,05 then you buy limit should be at market price, whatever that is at the open.
You can not alter, open or close orders when the Broker is close and not taking any.

J.
  • #3
  • Apr 13, 2013 10:06am Apr 13, 2013 10:06am
Quoting jeuro
If the market open below 98,05 then you buy limit should be at market price, whatever that is at the open. You can not alter, open or close orders when the Broker is close and not taking any. J.
Thanks for the clarification!
  • #4
  • Apr 15, 2013 6:30pm Apr 15, 2013 6:30pm
Quoting Fx-Pimp
Buy stop= price above buy/ask price. Sell Stop = price below sell/bid price. hope it helps.
^^

right

you can also use limit stops to remove exposure if your broker allows hedging
  • #5
  • Apr 15, 2013 7:16pm Apr 15, 2013 7:16pm
Quoting Fx-Pimp
Buy stop= price above buy/ask price. Sell Stop = price below sell/bid price. hope it helps.
Yes, but that wasn't what the OP was asking
Please Do Not PM Me With Coding Enquiries
  • #6
  • Apr 16, 2013 4:23am Apr 16, 2013 4:23am
@cloudstr1f3r

I would call your broker to clarify this point, it is possible each broker may have a different policy to that event occuring.

You may or may not get filled at all.
It never gets easier, you just get better
  • #7
  • Apr 18, 2013 10:32am Apr 18, 2013 10:32am
Quoting Fx-Pimp
Buy stop= price above buy/ask price. Sell Stop = price below sell/bid price. hope it helps.
It is Bid/Buy and Sell/Ask
  • #8
  • Apr 18, 2013 12:34pm Apr 18, 2013 12:34pm
Quoting Red Herring
It is Bid/Buy and Sell/Ask
No.
The ask price and the bid price are just 2 prices.
The ask is the price the Broker is asking for a currency. So, if you want to buy
you have to pay the ask price. The bid is the price the Broker is offering to purchase currency.
So, if you want to sell a currency you get the bid price.

But has a twist. In forex the "first" transaction is always a purchase. If you enter "long" you are
purchasing the first currency of the symbol ie. eur/usd you are purchasing euros, but if you enter short
then you are purchasing the second currency of the symbol, in this case dollars.

The "second" transaction is always selling what you purchased.

So... it is a bit confusing , because if you enter with a short, you pay the bid price..
J.
  • #9
  • Edited 2:27am Apr 21, 2013 2:17am | Edited 2:27am
Quoting cloudstr1f3r
Hi everyone, I've placed an order to buy limit for USD/JPY at 98.05, I would appreciate it if someone can tell me if the market opens let's say lower than 98.05, and I get filled of my buy limit. Would my execution price stay at 98.05 or would it be the physical market price? Also, I have been trying to alter my order, however, since the market is closed it couldn't be done. Does anyone know in anyway when I can change or cancel my order earlier than the market opening? Would appreciate it a lot if someone could answer me.
Your order will execute at the price the market open. So if it will not be 98.05. It will be the market price when your broker server starts to pump data in.

It will be the same to Stop Loss. I did have a stop loss over the weekend, the order was in profits. And on the following week, stop loss got hit but price is now way higher than my set value, and the order is closed at the market price when open, hence a bigger loss than the desire stop loss.

See the attachment, I short @ 4230, price went to 4176 (60 pips) by the end of Friday so I moved SL to break even. You can see the tiny red dash under the arrow indicating Stop Loss.

On next Monday, instead of SL @ break even, marker price is at 4283 and my order is closed with that price.

Hence I lost 120 pips in total.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpchfm30.png Size: 8 KB
back... and more dangerous.
  • #10
  • Apr 21, 2013 3:46am Apr 21, 2013 3:46am
Quoting kbp
Your order will execute at the price the market open. So if it will not be 98.05. It will be the market price when your broker server starts to pump data in. It will be the same to Stop Loss. I did have a stop loss over the weekend, the order was in profits. And on the following week, stop loss got hit but price is now way higher than my set value, and the order is closed at the market price when open, hence a bigger loss than the desire stop loss. See the attachment, I short @ 4230, price went to 4176 (60 pips) by the end of Friday so I moved SL...
A SL is different because your broker earns more that way , whereas in a buy limit why would he give a lower price and in that way reduce his profit. I would think it would open at 98.05 even if it opens lower than that.
  • #11
  • Apr 21, 2013 3:57am Apr 21, 2013 3:57am
at least with MT4 broker you will get the worst price possible...that's my experience
if your TP is within the gap you will get the price you set and not the first price availlable
SL will be executed @market
if your pending order is within the gap limit orders will be filled at the price you set and stop orders @market
  • #12
  • Last Post: Apr 24, 2013 7:36pm Apr 24, 2013 7:36pm
Quoting iwjw
at least with MT4 broker you will get the worst price possible...that's my experience if your TP is within the gap you will get the price you set and not the first price availlable SL will be executed @market if your pending order is within the gap limit orders will be filled at the price you set and stop orders @market
TP is a limit order

limit orders have a limit price, the market taking your limit order and filling it has no obligation to give you a better price


stop (loss) orders have a trigger and a limit price, for most brokers the limit price is the market rate, and the trigger is the level you set your stop at

it's impossible to sit passively with a stop, since the action is to trade into the moving market as it moves against you, not like a limit order where the market trades into you

that's why slippage is possible on stops - in forex, or in any market, it's the nature of how a stop loss works
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