Explaining Limit Order?

Taken from Forex Secret Agent

Where do you set them? Back testing your system can be beneficial here. You can check through the last months and years of markets that would trigger a trade under your system and figure out what would’ve been the best setting for the limit order. Testing in a demo account is also useful. This can mean that you only have to score a fifty percent success rate to be in profit. Setting the limit order at two times the pips of the stop loss, either before or after spread, might be suitable. However , this depends upon your system. Don’t skip the testing.

Using limit orders has another valuable benefit too. Once you have both stop loss and limit order in place , you can walk away from the computer and get on with your day. This decreases stress and makes it less likely that you will panic and vary from your original plan. So using limit orders in forex trades implies a happier, more rewarding trader.