Forex Trading Orders
A market order is an order to buy or sell which is to be filled rapidly at the current exchange rate quotation under normal market conditions. A market order is what you use when you want to execute an order immediately at the current market price, it is displayed as a bid or ask price. The information in this article is a brief introduction to understanding today's Forex Market Order.
Entry Orders: An order used to enter a trade once a currency pair hits a pre-determined price level. The execution is handled by the dealing desk supervisor and the order is in effect until canceled by the client.
Limited Entry Orders: This type of order initiates an open position to sell as the market rises, or buy as the market falls. The client believes the market will reverse the direction at the level of the order.
1. Buy Entry Limit: An order to buy at a price below the existing market value.
2. Sell Entry Limit: An order to sell at a price above the present exchange value.
Entry Stop Orders: All Entry Limit Orders work to initiate initiating an open position to sell as the market falls, or buy as the market rises. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction.
1. Buy Entry Stop: An order to BUY at a price ABOVE the present exchange.
2. Sell Entry Stop: An order to SELL at a price below the present exchange value.
Limit Orders: A limit order is an order tied to a specific position for the purpose of locking in the gains from that position. A limit order remains effective 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 trade position. One order, the stop, is to prevent additional loss on the trade position, and one order, the limit, is to take profit on the trade position. When either order is executed, closing the trade position, the other is automatic a canceled.
Stop-Loss Orders: A stop-loss is an entry order linked to a specific trade position for the purpose of stopping the trade position from accruing additional losses and a stop-loss order placed on a buy trade position is a stop entry order to sell linked to that trade position. A stop-loss order remains open until the trade position is liquidated or the client cancels the stop-loss order. While a stop-loss order on a sell trade position is an order to buy that trade position; keep in mind that any stop-loss orders remain open until the trade position is liquidated or canceled by the client.
While a stop-loss order on a sell exchange position is an order to buy that exchange position. Every stop-loss orders remain in effect until the exchange position is liquidated or canceled by the client.
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