Guidelines for Trade Orders

Crypto community members, market investors and forex traders can all use various order types to start a trade. On Olymp Trade’s platform, a trade order can be used, or a trade executed on the spot.

This service is free and it can open a trade automatically if the conditions specified are met. The different types of order can each be used in various situations. In this article, we’ll discuss them in more detail.

Price orders

A position is opened by traders with a price order at the price specified. If a trader for example wants to purchase bitcoin for $10 000, but the current price $11 000 they would initiate a price order at $10 000, while specifying the following:

  1. Asset type. This will open the asset chart for the selected asset by default.
  2. Trade’s execution level. The trade will be automatically opened when the price reaches this level.
  3. Take profit & Stop loss are additional options that may be used. It should be noted that the Take profit should be more than +10% of the amount invested, while the Stop Loss can’t be lower than -10% of the investment amount.
  4. The trade type is selected where Down means sell, and Up means buy.
Open  Specified Price on Olymptrade
Open Specified Price on Olymptrade

What Are Price Orders Used For?

The price order tool is used to simplify trading resistance and support levels. Let’s use two examples to illustrate the most common ways the tool is used:

  1. Trading a level reversal.

If the EUR/USD chart has for example a support level at 1,10000 and the trend has reversed from this level several times, a trader can put in an order buy the asset by initiating a price order at 1,10000.

  1. Trading a level breakout.

A trader may see a breakout of a resistance or support level as a signal that a trend will continue.

Bitcoin for example often trades around important price levels. In this example, bitcoin has traded just below $20 000 for a while, but has not managed to break it yet. Chances are good that traders will start actively buying the asset again if its price moves higher than $20 000.

A trader may therefore initiate a price order at $20 100 to start making a profit as soon as the breakout happens.

Slippage

The actual value of the execution of price orders may be slightly different from the price that was specified as a result of the mechanism specifics. The quote may change slightly during the time lapse between the order’s condition being triggered and the trade being executed, even though this time can be measured in nanoseconds.

Time orders

This type of order provides traders with the opportunity to open trades at a specific time. A trader simply selects the “by time” menu option and specifies the required parameters in the normal way to place this type of order. The only difference between a time order and a price order is that the time is selected instead of the price.

Time orders for deals on Olymptrade
Time orders for deals on Olymptrade

What are time orders used for?

This type of order is most often used by traders when they trade the news as per the economic calendar, and they know beforehand when a report will come out.

If a trader for example expects the EUR will grow after the EU’s GDP report is released at 12:00 GMT and wants to earn on it, they would place a “time order” that will initiate the trade at 12:00 GMT.

Although this type of order is also used for temporal patterns, these are very rare in the market.

Order time limits

Trade orders will be active for 24 hours after they have been created and they will be cancelled automatically if the conditions specified are not met during this period.

When Do Trade Orders Not Work?

Orders may not turn into trades if the conditions are not met within the 24 hour time limit, or if the trader’s account does not have the required amount available at the time when the trade is initiated.

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