Understanding Forex 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, stop or limit, initiating an open position and executed when a specific price level is reached and/or broken. The execution is handled by the dealing desk and the order is in effect until canceled by the client.
Entry Limit Orders: Placing this type of order will initiating an open position to sell every time the market rises, or buy every time 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 present market.
2. Sell Entry Limit: An order to sell at a price above the present exchange.
Entry Stop Orders: These are orders that initiate initiating an open position to sell when the market falls, or buy when 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 market value.
2. Sell Entry Stop: An order to SELL at a price BELOW the present market value.
Limit Orders: A limit order placed on a Buy position is a limit entry order to SELL that position; this is for the purpose of locking in the gains on an existing position. A stop-limit order remains in effect until the position is liquidated or the client cancels the stop-limit order.
OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific market position. The stop order, is to prevent additional loss on the market position, and the other limit order will make a profit on the market position. When either one is executed, closing the market position, the other is automatic a canceled.
OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific position. The stop order, is to prevent additional loss on the position, and the other order (the limit order), is to take profit on the position. When either order is executed during closing the position, the other is automatic Every canceled.
While a stop-loss order on a sell position is an order to buy that position. Every stop-loss orders remain operational until the position is liquidated or canceled by the client.
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