Placing Forex Orders
Basically the Forex Market Order is an order to buy or sell which is executed immediately at the current currency price. Orders are displayed as either a bid or ask price. The information in this article is a brief introduction to understanding today's Forex Market Order.
Entry Orders: An entry order is an order that is executed when a particular price level is reached and/or broken. The execution of these orders are under the dealing desk and remain in effect until the client cancels the order.
Limited Entry Orders: All Entry Limit Orders work to initiate an open position to sell as the market rises, or buy as the market falls. The market is expected to change in directions at the level of the order.
1. Buy Entry Limit: An order to buy at a price below the current exchange value.
2. Sell Entry Limit: An order to sell at a price above the present trade value.
Entry Stop Orders: These are orders that initiate an open position to sell every time the market falls, or buy every time the market rises. The client believes that prices will continue to move in the same direction every time the previous momentum after hitting the order level.
1. Buy Entry Stop: An order to BUY at a price above the existing market.
2. Sell Entry Stop: An order to SELL at a price below the present exchange.
Limit Orders: A limit order is an order tied to a specific position for the purpose of locking in the gains from that position; while they are placed on a buy position it is an order to sell and limit orders placed on a sell position is an order to buy. All limit orders remain in effect until the position is liquidated or canceled by the client.
OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific exchange position. The stop order, is to prevent additional loss on the exchange position, and the other limit order will make a profit on the exchange position. When either one is executed, closing the exchange position, the other is automatic every canceled.
Stop-Loss Orders: A stop-loss is an entry order linked to a specific market position for the purpose of stopping the market position from accruing additional losses and a stop-loss order placed on a buy market position is a stop entry order to sell linked to that market position. A stop-loss order remains effective until the market position is liquidated or the client cancels the stop-loss order. While a stop-loss order on a sell market position is an order to buy that market position; keep in mind that all stop-loss orders remain effective until the market position is liquidated or canceled by the client.
Each stop-loss orders remain operational until the market trade position is paid off or canceled by the client. While a stop-loss order on a sell market trade position is an order to buy that market trade position.
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