Direct answer: when do you buy and sell in forex?
In forex, you “buy” when a Buy Limit order is executed—meaning the market price reaches your chosen limit price (or better). You “sell” when you later exit the position, typically by placing a sell order (such as another pending order or a market close) once you decide to close the trade.
In the specific scope of a Buy Limit order, the key timing rule is: the Buy Limit does not execute immediately just because you placed it; it executes only when the market reaches the buy limit price you selected.
How a Buy Limit order determines when a buy happens
A limit order sets a specific price level. A Buy Limit is a pending order to buy at a price at or below the limit price.
From a timing perspective, there are two separate moments:
- Placement time: you submit the Buy Limit.
- Execution time: the Buy Limit becomes filled when the market price reaches the limit level and there is matching liquidity.
So, “when to buy” is tied to price arrival, not to placing date or a fixed time window. If the market never trades at your limit price (or better), the Buy Limit may remain unfilled.
When the sell happens relative to the buy
Selling is not part of the Buy Limit order itself. A Buy Limit primarily answers when to enter (buy). To “sell,” you need a separate action later, for example:
- you close the position with an execution order, or
- you place a separate exit order (for example, a pending sell order) depending on the platform’s available order types.
Therefore, “when do you sell” is usually after the buy execution and depends on the exit action you choose to place. Without an exit order, the trade remains open after the buy fills.
Example checks (no predictions, just mechanics)
- If you place a Buy Limit below the current market price, you are waiting for the market to trade down to that limit; the buy occurs only at execution.
- If price moves away upward and never reaches your limit, the Buy Limit typically does not execute.
- After the buy is filled, any selling timing depends on the later order you place to close or reduce exposure.
Relevant limitations and risks to verify independently
Forex prices and executions depend on market liquidity, spreads, and order handling by the trading venue and platform. Even when a limit is used, real-world fills can be affected by execution conditions.
Also, the phrases “buy” and “sell” refer to different events: order execution for the buy entry versus a separate later execution for exit. A common limitation is assuming they happen at the same time.
Finally, this explanation is general and does not include real-time market data or your specific circumstances, so it cannot predict whether any particular Buy Limit will fill or when the market will reach your chosen price.