Types of Forex of orders
“Orders” are used to explain how you will enter or exit a trade.
There are different types of Forex orders, and each one of them performs different actions based on the market’s circumstances around your trade.
It is essential to know which types of orders your broker offers so that you can plan your strategy accordingly.
There are some basic order types that all brokers provide:
- Market order
- Limit Entry Order
- Stop Entry Order
- Stop Loss Order
- Trailing Stop
Open your Demo account with IronFX and experiment with available orders with no risks involved.
For the list if all order types available in the financial markets, visit the page here.
What is Entry Order?
An entry order is used to enter a trade at any specified price level.
If the market fails to reach the specified price level, then the entry order will not be executed.
A trader can set up 3 different types of entry orders:
- Market Order
- This order allows traders to buy or sell at the best current price
- Limit Order
- Traders buy at a point below the current market price or sell at a point above the current price, if the order price is reached. This type of order is usually used when a trader thinks the price action will reverse once it hits the specified price level.
- Stop Order
- This is an order to buy at the market above the current market price or to sell at market below the current price, if the order price is reached. This type of order is used when a trader believes that the price action will continue once reaching that specified price level.
What is Limit Order?
A limit order is used to instruct your broker to fill your trading order at a higher or the exact price you choose.
#Forexample, once you are setting a limit order to sell a stock at the specific price rate of $100 having its current market price of $90, your order will be filled only when the price will become $100 or higher.
It’s the same with a buy order, if you wish to purchase a stock for a specific price, you can set a limit order that will be filled at the time when the price you specified becomes available.