Have you ever heard of the term buy limit forex? Reliable traders usually already know that forex trading activities cannot be separated from buy and sell positions.

Usually accurate forex predictions are needed, although the freedom in determining buy and sell positions is completely in the hands of the trader himself. Basically, a trader himself can achieve optimal profit and can avoid losses.

You need to understand when taking long positions, traders can combine long or bid, then sell positions can also be combined with short or offer. After knowing it, you will not be confused when you meet some of these terms.

In addition to having to know the term, you also need to know the spread value that will be determined by the best forex broker and usually the spread value itself can be different for each broker.

The smaller the spread value obtained, the better the conditions for investors. It would be nice, you look for a broker with a competitive spread value.

One example, you will choose a forex broker who only applies a very low spread value, which is only 2 pips. This will make you understand if forex trading activities are known as Buy Stop, Sell Stop, Buy Limit, and Sell Limit.

Understanding Buy Limit Forex

Remember, before jumping into the world of forex, you need to know another term from forex, namely buy limit. It is known as ordering or placing a Buy in your transaction.

To be precise, below the current price, the expectation from the chart that the running price will decline and lead to a certain point. At the point that leads, a Buy will automatically be installed with the aim that the graph can increase so that you can get a profit.

For example, the price of Buy Limit Forex currently reaches 1.3525 then you have the desire to apply an open position Buy Limit Forex if a price has decreased to 20 pips from the running price or the current price.

How to use Buy Limit 

In addition to understanding buy limit forex, you also need to know how the buy limit works. Here's how to use it.

It is almost the same as Sell Limit, which can be used in a sideways or trending state. Usually in a sideway situation, you will determine Sell Limit at the over bought level and Buy Limit at the oversold level.

Meanwhile, during a trending situation you can buy when the price is in the support area (buy the dip). However, if you want to be more effective in using buy limit, you can directly confirm with the moving average, parabolic SAR (pSAR) and stochastics indicators.

In use, it will be at the bottom line of the uptrend channel, and the %K curve at the point of the stochastics indicator. Then from the bottom, while the price moves above the support curve at the ema point at 55 and the SAR indicator point is below the candlestick bar.

Meanwhile for Sell Limit itself when the price is at the top line in the downtrend channel, and the %K stochastics indicator curve from the top which confirms when the price moves below the resistance curve.

Besides having to know the Forex Buy Limit and Sell Limit, you also need to understand the Buy Stop and Sell Stop. To understand this, you can access the free forex education service provided by Didimax forex broker.

Together with a trusted broker, you can carry out your trades safely without any worries. You will also get various interesting information such as the buy limit forex discussed above.