In Forex trading, there are several different types of orders that help you know how you
can use them to enter and exit the market.
- Market Orders
This is an order to buy or sell at the best available price.
- Limit Orders
A limit entry is an order placed to either buy below the market or sell above the market at a certain price.
- Stop-Entry Order
A stop-entry order is an order placed at a certain price to buy above the market or sell below the market.
- Stop Orders or Stop Loss Orders
Stop Orders are also an exit order that will close your trade. Commonly referred to as a stop loss order, it is intended to limit the amount of loss incurred by your trade. It will close your trade at a designated level of loss. Stop orders can also be used to lock in gains as you are making a profit.
- Trailing Stop
A trailing stop is a type of stop-loss order attached to a trade that moves as price moves up and down. Your trade will remain open as long as the price does not move against you by an amount established. Once the price hits your trailing stop, a stop-loss order will be initiated and your position will be closed.
These are the main types of orders you will be needing in Forex trading. After years of experience you may find yourself trading with these other orders:
- Good for the Day (GFD): the most common, is a market or limit order that is in force from the time the order is submitted to the end of the day’s trading session.
- Good ‘Till Cancelled (GTC): is an order to buy or sell a security which remains in effect until executed or canceled.
- One-Cancels-the-Other (OCO): are used when the trader wishes to capitalize on only one of two or more possible trading possibilities.
- One-Triggers-the-Other: with this order you are actually placing two orders at once. The first is sent to the market immediately, the second is sent to the market only when the first one is filled.