Question: What's the difference between "Order" and "Deal" in Forex financial market?
Order
An order is an instruction given to a broker to buy or sell a financial instrument.
There are two main types of orders, which are “Market order” and “Pending order”.
Market order is an order which will be executed at the current available market price, and Pending order is an order which will be executed at the market price which a trader prefers when the market price reaches to that price.
In addition, there are special Take Profit and Stop Loss levels.
In order to invest in any financial markets, you need make an “order” to buy or sell depending on your expectations.
Normally if you expect a market price to rise in the future, you make an buy order now and sell order later on, and vice versa.
A transaction will be completed only when there is someone to buy and sell at the same market price. If there is no one selling for your buy order, then your order won’t be completed.
Deal
A deal is the commercial exchange (buying or selling) of a financial security.
A deal will be made when two parties agree to transact a order, as buying is executed at the demand price (Ask), and Sell is performed at the supply price (Bid).
A deal can be opened as a result of market order execution or pending order triggering.
Forex is made on OTC(over the counter) transaction. As in there need to be always two parties to make a deal for a transaction.
First you make an order, then a deal will be made. And after that you will hold a position which is a trade obligation, i.e. the number of bought or sold contracts of a financial instrument.
