Forex Market's Order Types
Limit Order
A limit order is used to earn profit on a position by closing it out at a predetermined price. For a long position, a limit order is placed above the current price. If a trader holds a short position, then a limit order will be placed below the current price.
Stop Order
A stop order is used to minimize losses. For a long position, a stop order is placed below the current price. If a trader holds a short position, then a stop order will be placed above the current price. Also known as a “stop-loss order”, its purpose is to close out a position in which the market is moving against you, limiting your losses on a trade.
A stop order is used to minimize losses. For a long position, a stop order is placed below the current price. If a trader holds a short position, then a stop order will be placed above the current price. Also known as a “stop-loss order”, its purpose is to close out a position in which the market is moving against you, limiting your losses on a trade.
Market Order
An order where you can buy or sell a currency pair at the market price the moment that the order is processed. Example: If you are looking to place an order for JPY when the dealing price is 104.00/05, a market order will request to buy JPY at 104.00 or will request to sell JPY at 104.05
An order where you can buy or sell a currency pair at the market price the moment that the order is processed. Example: If you are looking to place an order for JPY when the dealing price is 104.00/05, a market order will request to buy JPY at 104.00 or will request to sell JPY at 104.05
Entry Order
With an entry order you can buy or sell a currency pair when it reaches a certain price target. You can set an entry order for the low price of a time period or the high price of a time period. The entry order allows you to choose a price and place an order to buy at that price.
With an entry order you can buy or sell a currency pair when it reaches a certain price target. You can set an entry order for the low price of a time period or the high price of a time period. The entry order allows you to choose a price and place an order to buy at that price.
Take Profit Order
A Take Profit Order protects your profits in the event that the instrument price moves in a favourable direction. The Take Profit Order instructs the broker to close a position when or if the instrument reaches a specified price.
A Take Profit Order protects your profits in the event that the instrument price moves in a favourable direction. The Take Profit Order instructs the broker to close a position when or if the instrument reaches a specified price.
OCO Order-One Cancels Other
This is used to take advantage of price movements and consists of both a Stop and a Limit price. Once one level is reached, one half of the order will be executed (either Stop or Limit) and the remaining order cancelled (either Stop or Limit).
This is used to take advantage of price movements and consists of both a Stop and a Limit price. Once one level is reached, one half of the order will be executed (either Stop or Limit) and the remaining order cancelled (either Stop or Limit).