Question:List of Order Types and How they work on Forex trading platforms

Answer:

Use Order Types of manage risks

Open positions should always have a stop order of some kind attached to them.

Attaching a stop order allows traders to limit their risk to a pre-determined level and are also the fundamental backbone to a serious trading strategy.

Any popular trading platforms such as MT4 and MT5 offer many order types which can all be used to manage risk in different ways.

Some orders may be listed in abbreviations as GFD or GTC, shorthand for Good-For-Day and Good-Til-Cancelled respectively.

Good-For-Day orders are automatically cancelled at the end of each trading day. Good-Til-Cancelled orders remain active until they are either executed or cancelled directly by the user.

List of Orders Types and How they work

Knowing the order types available on your trading platform is important.

You can not only benefit from each features, but organize your trading strategies for a better result.

Here are the popular order types available on many online trading platforms.

1. Market Order

A market order is an order to buy or sell at the best available price.

2. Limit Order

Limit orders allow investors to set a limit price whereby an entrance or exit trade will be executed.

The order is set to buy or sell a specific quantity at a particular price over a chosen time period.

Limit orders may be placed GTC or GFD. Limit orders need not be attached to open positions to be placed – they can be further used to enter the market.

For example, if a speculator is expecting a price breakout after a technical level is breached, they could place a limit or stop order beyond the level to catch the movement.

3. Limit Entry Order

This is an order placed to buy below the market or sell above the market at a certain price.

4. Stop Order

Stop orders allow investors to set a stop price limiting downside risk.

Just as a limit order, the order is set to buy or sell a specific quantity at a particular price over a chosen time period.

Stop orders may be placed GTC or GFD.

Both stop and limit orders need not be attached to open positions to be placed – they can be further used to enter the market.

For example, if a speculator is expecting a price breakout after a technical level is breached, they could place a limit or stop beyond the level to catch the movement.

5. Stop Entry Order

This is placed to buy above the market or sell below the market at a certain price.

6. Stop Limit Order

Stop Limit Orders turn into Limit Orders when triggered.

On the Jiffix Classic platform, you can further set slippage controls for these orders.

7. Stop Loss Order

This is linked to a trade for the purpose of preventing additional losses.

The stop loss order stays in effect until the position is closed or until the order is cancelled.

8. Trailing Stop

This is a type of stop loss order attached to a trade that moves as price fluctuates.

Your position will be closed when a market order to close your position at the best available price is sent.

Trailing stop orders give speculators the opportunity to let profits run while simultaneously limiting downside risk.

9. Good For the Day

A GFD order stays active in the market until the end of the trading day.

10. Once Cancels the Other

An OCO order is a mixture of two entry and or stop loss orders.

Allows a trader to place both a stop and limit order simultaneously, bracketing a position.

When one order is executed, the other is cancelled.

The reason for the cancellation is to prevent any accidental re-entry into the market once the position is closed.

OCO orders can also be used to bracket just outside both a technical support and resistance level, catching the market should it break to the upside or downside.

11. One Triggers the Other

An OTO is the opposite of an OCO as it only puts an order when the parent order is triggered.

12. If Done Order

If-Done order is essentially a double-stacked order.

The “If” must be a limit or stop order.

Only once the initial limit/stop order is executed will the “done” become active.

The 2nd order must also be a limit or stop order.

13. If Done OCO Order

The same order type as a normal If-Done, only the 2nd order is an OCO order.

An If-Done OCO can be set to enter the market with a limit/stop at a specified price.

Once the transaction is executed, it will be automatically bracketed with both a “take profit” and a “stop loss” order.

14. Fill or None

This order allows a trader to set the parameter that his entire trade must be taken at a set price or none of it.

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