We’re going to talk about types of Forex orders and methods to place an order on Forex with the help of a broker or by yourself. Before we start to explain those thinks about orders on Forex, you should read all about Forex market on another great article.
Orders on Forex can be delimited in:
- Market orders
- Limit orders
- Take profit orders
- Stop loss orders
- Trailing stop orders
We’re going to start with market orders that are represented by those type of orders that are executed exactly when they’re places and becomes an open position. So any fluctuation can happen at any time and you can rather loss or win.
On other side, limit orders are more specified. So you can buy or sell a currency pair only if certain conditions included in trade instructions are fulfilled. In that moment you can say that you’re placing a limit order, otherwise the order is considering to be a pending order.
Stop loss orders is a good way to stop when you only have profit. When you place the order, it is going to help you against major losses. Choosing this time of order, it closes automatically and from an open position becomes a closed one exactly when the exchange rate moves against your order .
Trailing stop order is similar to the stop order and can be use to stop any loss and avoid margin close outs. So trailing stop orders will be in an open position as long as the market price goes in a favorite direction for you.
As you can see there are many types of order so you can choose the best one for you. And don’t forget about searching the best broker for your needs. You can always read a review about any provider of those services and decide of one of them. Trade smart!