Types of Forex Orders Part I

A trader has different types of forex orders at his disposal. It is crucial to have a clear understanding of each forex order type to experience any success as a forex trader.

Some of the forex order types are:
Market Orders: A buy or sell order, which is designated to be executed at the forex market price is known as a market order. They are also known as immediate orders because they are transacted immediately at the current price of the forex market.

Limit Orders: These include buy or sell orders that are executed when a certain condition set by a trader is met. They are also known as pending orders because when the market price is not equivalent to the limit price, they are placed in a pending queue until a matching order comes in.

Entry Order: This is a buy or a sell order that enters a trading position at a specified level. An entry order can be either an immediate or a pending order.

Take Profit Order: This includes buy or sell limit orders that close a trading position when the designated profit level set by a trader is met.

Stop Loss Order: As discussed earlier in Chapter 6, a stop loss order helps to minimize/stop losses by putting a buy/sell limit order as a currency pair reaches a designated level set by a trader. It signifies a predetermined decision regarding the risk level for a currency investment.

To read about other types of forex orders, click here.

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