Buy Limit and Sell Limit are two types of pending orders that traders can use in Forex trading to enter the market at a specific price level.
A Buy Limit order is an instruction to buy a currency pair at a price lower than the current market price. Traders use Buy Limit orders when they believe that the price of a currency pair will fall to a certain level, and they want to buy the currency at that lower price. For example, if the current price of EUR/USD is 1.2000 and a trader wants to buy the currency pair when it reaches 1.1900, the trader can set a Buy Limit order at 1.1900.
A Sell Limit order is an instruction to sell a currency pair at a price higher than the current market price. Traders use Sell Limit orders when they believe that the price of a currency pair will rise to a certain level, and they want to sell the currency at that higher price. For example, if the current price of EUR/USD is 1.2000 and a trader wants to sell the currency pair when it reaches 1.2100, the trader can set a Sell Limit order at 1.2100.
Both Buy Limit and Sell Limit orders are executed automatically by the trading platform when the specified price level is reached. These orders allow traders to enter the market at a specific price, even if they are not actively monitoring the market, which can be useful for traders who want to take advantage of specific market conditions.
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