i understand all You say about that soft limit orders but i still do not really know how that help us ?
normal limit order works like that:
we have price for example on 1,4950
we can place limit buy order below that price let's say 10 pips below so we have buy limit order at 1,4940
the news are published and the price is going down and nothing happened because the limit order fill in only when the price is returning up (in that example)
if we can put that magic soft sell limit order we can place it at the same level that our example buy limit
so we have soft sell limit order at 1,4940
the news are published and the price is going down
and if this is true what You say that order will be filled in at that price ?
but why ?
this is still limit order
so it should first go up from below of that order and then down and until that this order will not be filled in
i understand that this kind of order is simply the future limit orders
we can place them where we want but the mechanism of its filling in is the same that normal limit order ?
if I am wrong in my thinking can You explain me where i make the mistake ?
and the second issue
lets say I am wrong and that kind of order will be really filled in just like You say
so what is the difference between that kind of order and the stop order ?
why You believe that the stop orders have may pips of slippage and the soft limit orders won't ?
Honestly everything you are asking about I have already explained, so please just reread carefully in my above posts, but I will try again here.
First, I'm not talking about a "normal" limit order.
Defintion of a
soft limit order: for a BUY, placing the order above current market price, not below. You first need to get this. This is not a stop order, it is a limit order. I understand this is different from what all the forex books and websites tell you, but you need to understand this, that yes, you CAN place a limit order above current price. What happens usually when you do this? Your order just gets filled instantly at the current price.
In your example, you would be filled immediately as long as price had not gone beyond your sell limit at 1.4940. So if price was 1.4950, you'd get filled right away, probably at 1.4950, but would not get a fill any lower than 1.4940. It's not a "future" limit order at all. As long as price has not yet passed your limit at 1.4940 (in this case price anywhere between 1.4950 and 1.4940), you get filled right away.
So let's again use my earlier example: current price is 50. You set a buy limit at 60. What happens? You probably get filled right at 50. What's the difference between this and a stop order at 60? Tons. A stop order doesn't even kick in until price reaches 60, and then when it does, it's just a market order, so you get filled wherever and have zero control re. the fill. So you might get filled at 100. A
limit order at 60, you get filled anywhere from 50-60, BUT NO HIGHER THAN 60. Understand now?
So, why would you ever use this? At news, you may have noticed price spikes violently one direction (let's say "up" in this case). Using a market or a stop order, you have no control over your fill. You could have a horrible fill with slippage. But using a limit (soft limit), you'll either get filled at 60 or lower, or you won't get filled at all. Again, the whole point here is slippage control when spike trading.
Ok, again, all you need to understand this is in my now 3 posts on the subject.
And again, you cannot do this on MT4.
Hope it helps...