Types of Forex Orders “Would you like pips with that?”

An order is an offer you send using a broker's trading platform to open or close a trade when you have followed the instructions you specify.

Basically, the term “order” refers to how to start or end a trade.

Here we will explain the different types of orders you can place in the Forex market.

Make sure you know the types of orders your broker accepts.

Different brokers accept different types of Forex orders.

Order Types

There are a few basic order types that all brokers offer, some of which may sound strange.

Orders are divided into two groups.

Market Order: A broker-provided order that is carry out right away at the price stated.

Pending Orders: Orders that will be performed at the predetermined cost at a later date.

Below is a brief map of the different order types in each basket.

Market Order

A market order is an order to buy or sell at the best price.

For example, EUR/USD currently has a buy price of 1.2140 and a sell price of 1.2142. If you want to buy EUR/USD on the market, it sells for 1.2142.

When you click the buy button, the trading platform will immediately fill your buy order with that (hopefully) correct price.

If you've ever shopped on Amazon.com, it's like using a 1Click order. If you're happy with the current prices, it's just one click away!

The only difference is that instead of buying a Justin Bieber CD, you buy or sell one currency for another.

Please be aware that depending on market conditions, there may be discrepancies between the selected price and the final price carry out (or “filled”) on the trading platform.

When you place a market order, you do not have any control over what price your market order will actually be filled at.

Limit Order

A limit order is an order to buy below the market or sell above the market at the predefined cost.

An order to buy or sell when the market has reached a “price limit”.

Put in a limit purchase order to buy at or below a certain price.

Put up a “Buy Limit” order if you want to buy over a certain price.

To sell above a certain price, use a 'Sell Limit' order.

When the market reaches the “Limit Price”, the order is carry out and carry out at the “Limit Price” (or higher).

The current price is the blue dot.

The blue dots in the image above are the current prices.

Check if the green line is below the current price. It is set off when you place a BUY limit order here. The price should first drop here.

As you can see, a limit order can only be carry out when the price is more favorable to you.

Check if the red line is above the current price. If you place a limit order here, the price must increase here first. For example, EUR/USD is currently trading at 1.2050. I want to sell when the price reaches 1.2070.

You can sit in front of your monitor and wait until 1.2070 is reached (at this point you need to click on the market sell order).

Alternatively, you can place a sell-limit order at 1.2070 (and then attend a ballroom dance class away from your computer).

When the price rises to 1.2070, the trading platform automatically executes a sell order at the best price.

Use this type of input order if you think the price will reverse when the predefined cost is reached!

A BUY limit order at a price lower than the current market price will be carry out at a price equal to or lower than the predefined cost.

A SELL limit order with a price above the current market price will be carry out at a price equal to or above the predefined cost.

Stop Entry Order

A stop order “stops” execution of the order until the price reaches the stop price.

You can use a stop order if you want to buy only after the price rises to the stop price or sell only after the price decreases to the stop price.

A stop is an order to buy above or sell below the market at the predefined cost.

You place a Buy Stop order to buy at a price above the market price, and it is triggered when the market price reaches or exceeds the Buy Stop price.

Place a Sell Stop order to sell when the predefined cost is reached.

The current price is the blue dot.

The blue dots in the image above are the current prices.

Check if the green line is above the current price. If you set a BUY stop here, the current price should continue to rise.

Check if the red line is below the current price.

Placing a SELL stop here should keep the current price down.

As you can see, a stop order can only be carry out when the price becomes less profitable.

For example, the GBP/USD pair is currently trading at 1.5050 and is moving higher. If the price hits 1.5060, I think it will continue moving in that direction.

To reproduce this belief, you can do one of the following:

Sit in front of your computer and either buy when the market hits 1.5060 or make a stop at 1.5060.

Stop Loss Order

An order that closes when the market price reaches a specified price that may indicate a loss or gain.

A stop-loss order is a type of order that involves trading with the purpose of preventing further losses if the price moves against you.

If you are long, this is a STOP sell order.

If you are short, this is a Buy STOP order.

Remember this type of order.

A Stop Loss is valid until the position is liquidated or the Stop Loss is cancelled.

For example, you have entered a long position (Buy) in EUR / USD at a price of 1.2230.

To limit the maximum loss, set Stop Loss to 1.2200.

This means that if you are wrong and EUR/USD falls to 1.2200 instead of rising, the trading platform will automatically execute a sell order at the best price of 1.2200 and close the position with a loss of 30 pips (Wow!)...

Stop Loss is very useful if you don't want to sit in front of your monitor all day, worrying about losing all your money.

By placing a Stop Loss on every open position, you can make sure you don't miss a basket weaving class or an elephant polo game.

Please note that a stop order is NOT guaranteed a specific execution price and in volatile and/or illiquid markets, may execute significantly away from its stop price. Stop orders may be triggered by a sharp move in price that might be temporary. If your stop order is triggered under these circumstances, your trade may exit at an undesirable price. If triggered during a sharp price decline, a SELL stop loss order is more likely to result in an execution well below the stop price. If triggered during a sharp price increase, a BUY stop loss order is more likely to result in an execution well above the stop price.

Trailing Stop

A stop loss order that is always linked to an open position and automatically moves when profit is above a specified level.

A trailing stop is a type of stop loss attached to a trade that moves when the price moves.

Let's say you decide to short USD/JPY at 90.80 and use a 20 pips trailing stop.

This means that the Stop Loss is initially at 91.00. When the price declines and reaches 90.60, the trailing stop moves to 90.80 (or breakeven).

Stops, however, will remain at the new pricing level. The market will not expand if it moves in the opposite direction.

Going back to the example with a 20 pips trailing stop, when USD / JPY reaches 90.40, the stop moves to 90.60 (or a fixed 20 pips profit).

The trade remains open until the price moves 20 pips.

As soon as the market price reaches the trailing stop price, a market order will be sent to close your position at the best price and your position will be closed.

Limit Orders versus Stop Orders

New traders often confuse limit orders with stop orders. Because both have a price.

Both order types allow traders to tell the broker a price they are willing to trade at in the future.

The difference lies in the stated price.

A stop order activates an order when the market price is reached. Or pass the specified stop price. For example, EUR/USD is trading at 1.1000 with a buy stop at 1.1010. The order is carry out as soon as the price reaches 1.1010.

However, this does not necessarily mean that your purchase order was fulfilled in 1.1010. If the market moves fast, it could reach 1.1011.

In general, an order can be carry out at a stop price that is less than or better than the stop price. It all depends on how much the price fluctuates when the market price reaches a stop price.

Think of the stop price simply as a threshold for order execution. The price at which an order is carry out depends on market conditions.

Limit orders can only be carry out at a price that is greater than or equal to the specified limit. For example EUR/USD is trading at 1.1000 and has a buy order with a limit at 1.1009. If you do not receive on 1.1009 or later, your order will not be processed.

Think of a price cap as a price guarantee. When you place a limit order, the order is only carry out at the limit (or higher).

The problem is that the market price may not reach the upper limit, so the order may not be executed.

In the previous example, the EUR/USD pair could only decline to 1.1009 and then surge. So, even if you wanted to open a long position in EUR/USD, your order was not carry out because you were trying to open a long position at a lower price. You are seeing EUR/USD rising without you.

This is a compromise when using limit orders instead of market orders.

Weird Forex Orders

“Can I order an extra hot split quadruple shot that includes extra frothy soybeans, half a spray of sugar-free white chocolate, half a syringe of sugar-free cinnamon and half a bag of Splenda, and can I put it in my Venti？ Cup and？” Fill your “room” with extra whipped cream topped with caramel and chocolate sauce？

Oh, strangely wrong order.

Good Till Cancelled (GTC)

GTC orders remain active in the market until you decide to cancel them. Your broker will not cancel your order in any way. Therefore, it is your responsibility to remember that there are planned orders.

Good for the Day (GFD)

GFD orders remain active in the market until the end of the trading day.

Because the Forex market is open 24 hours a day, usually US market will be stop at 5:00 PM EST, but it is advisable to double-check with your broker.

GFC and GTC are known as expired orders.

An “expiration date” or TIF for an order defines how long an order will continue to run before being canceled. Just like a special command used when placing a trade to indicate how long an order remains active before it is carry out or expires.

One-Cancels-the-Other (OCO)

An OCO order is a combination of two Entry and/or Stop Loss orders.

There are two orders above or below the current price. When one of the orders is executed, the other order is canceled. OCO orders allow you to place two orders at the same time. However, only one of the two runs.

Let's say the price of EUR/USD is 1.2040. You should buy at 1.2095 above the resistance level in anticipation of a breakout or open a short position when the price drops below 1.1985. When 1.2095 is reached, the buy order is carry out and the sell order is automatically canceled at 1.1985.

One-Triggers-the-Other (OTO)

OTO is the opposite of OCO in that it only places an order when the top order is triggered.

OTO orders are placed when you want to preset Take Profit and Stop Loss levels even before you start trading.

For example, price of USD/CHF is trading at 1.2000. As soon as it hits 1.2100, I believe it will reverse and drop to 1.1900. The problem is that he will be absent all week because he has to participate in a basket weaving contest at the top of Mt. Fuji where there is no internet. To capture movement while away, set the sell limit at 1.2000 and the associated buy limit at 1.1900.

Set your Stop Loss to 1.2100 just in case. As an OTO, buy and stop orders are only placed if the original sell order was carry out at 1.2000. OTO and OTC orders are known as conditional orders. A conditional order is an order that contains one or more of the specified criteria.

In conclusion…

The main types of Forex orders (Market, Limit Entry, Stop Entry, Stop Loss and Stop Track) are usually all that most traders need. You can open a position using the following pending orders: A “buy stop” opens a long position above the current price. “Sell Stop” opens a short position at a price lower than the current price “Buy Limit” To open a long position at a price below the current price.

To open a short position at a price above the current price Sell Limit. And with practice, don't worry), develop a trading system that requires a large number of Forex orders are stucked in the market and don't run away. There is always a trade-off when using a limit order instead of a market order. For example, if you want to buy “now”, you have to pay a higher bid. This is called a “market order” because it trades at all market prices. If you want to save money, you should use “Limit Order”. The problem with patience is that sometimes prices keep going up and limit orders don't execute. You still need to enter a market order or update a limit order to start trading. This means that you are now paying more than your original selling price. Stick to the basics. Fully understand and familiarize yourself with the broker's order entry system before placing the orders. Also, always check with your broker for specific ordering information and ask if any rollover fees apply if your position is held for more than one day. The best strategy is to follow simple ordering rules. A market order is an order to execute an order at all available prices in the market. Specific execution prices are not guaranteed for market orders and may be carry out at undesirable prices. For more control over the execution price you receive, submit order using a limit order, which is an instruction to execute an order above a specified limit price. Do not trade real money until you have reached a very high level of comfort with the trading platform and order entry system you are using. Worst deal is more common than you think!