Forex orders

Hello again,

Previously we had looked at the various currency pairs which gave us an understanding of how to read the currency market this means you can almost impress people with your forex jargon. We looked at why its important to learn the forex jargon as its essential remember the pip, pipette and the bid/ask spread if you cant remember what these are and think I have gone mad please refer back to previous article FOREX TERMS. There you will understand where to look when the forex broker speaks of something or when you decide to join the online forums and interact with other traders so as to better understand forex. The next articles shall be using more of the forex terms so get ready.

Forex Orders
The term “order” is how you will enter or exit a trade. Different brokers have different types of forex orders.
Market order
An order to buy or sell at the best traded price.
This is seen when, the bid price for EUR/USD is  1.2140 and the ask price is at 1.2142. If you wanted to buy EUR/USD at market, then it would be sold to you at the ask price of 1.2142. When you click buy on the trading platform it will instantly execute a buy order at that exact price.
Limit Entry Order
A limit entry is an order meant to either buy below the market or sell above the market at a certain price.
llustrated by EUR/USD is currently trading at 1.2050. You want to go sell if the price reaches 1.2070. One might either wait for it to hit 1.2070 (to  click a sell market order), or you could set a sell limit order at 1.2070 (then walk away).
When the price goes up to 1.2070, the trading platform will insatntly execute a sell order at the best available price.
Stop-Entry Order
This type order is an order put to buy above the market or sell below the market when a certain price is reached .
Illustrated by GBP/USD is currently trading at 1.5050 and is going upward. You think that price will go in this direction if it hits 1.5060. You can do the following to play this logic: use stop-entry orders when you think that price will move in that direction!
Stop-Loss Order
A stop-loss order is a another order linked to a trade for the reason of preventing additional losses if price goes against you. Always remember this order. A stop-loss order remains in working until the position is closed or you stop the stop-loss order.
This are the various orders now we move to MORE FOREX ORDERS…

 

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