Forex orders refer to the way a trader enters or exits a trade. There are different types of orders in this business world, and you can use any of them. But it must be ensured which type of order the broker will accept because there are different types of brokers, and they accept different kinds of orders.
There are two basic kinds of orders –
- Market order: Traders have to execute this command immediately against the price given by the broker.
- Pending order: This order must be executed after a particular time when an investor specifies the currency’s value.
This order is only related to the buy and sell at an available value. For instance, the bid price for the currency pair EUR/USD is 1.30, and the asking amount is 1.31. Therefore, if a trader wants to buy the EUR/USD at the platform, it will be sold to him at 1.31. In this currency pair, the EUR is called the base currency, and the USD is called the quoted currency.
In this order, a trader has to click on the “buy” button, and the currency exchange platform will execute the “buy” command instantly at that amount. In this trading platform, an investor has to sell or buy one currency against another. When you think about the market order, try to trade with the best options broker in Singapore. Visit the address of Saxo and learn more about professional environment in trading.
A limit order is either placed to sell one currency against another over the market value or buy one currency against another beneath the market at a specific amount. In this command, a trader buys or sells his bought currency once the chart reaches or crosses the determined “limit price.”
In a nutshell, the beginners will place the “buy limit” command below or at a particular price and place the “sell limit” command above the price. When the currency’s value reaches that set amount or limit price, the platform automatically triggers and executes the trade.
The limit order to purchase a currency pair below the existing amount will be triggered and executed at a specific price equivalent or less compared to the specified price. The order to sell at a specific value above the existing market value will be triggered at a particular price equivalent or more compared to that specific value.
Stop entry order
The stop command will stop your order from being executed till the price touches the stop price. A CFD trader will use the stop order when he wants to buy a currency pair after the price increases to the determined stop price, and he will sell the currency after the value reduces to the stop price order.
The stop entry order is such an order, which is placed to purchase one currency against another over the market and sell that below the market at a specific value. An investor will place his “buy stop” order to purchase at a value, which is above the actual amount. His trade will be executed once the graph touches the limit. The same is the case for the sell at stop order.
Stop loss order
It will automatically shut down a trade when the market reaches the determined value. Professionals recommend using this order to avoid huge financial loss. The stop loss can prevent the loss if the price moves against luck. When a newbie is in a longer position, the stop loss will be a sell stop, and when he is in a shorter position, it will be a buy stop.
For instance, when an investor goes for a longer-term and buys EUR/USD at 1.5000, he will have to limit the losses. For this, he must set the stop loss command at a value of 1.4998. It means that if the graph falls and exceeds 1.4998 value, the trade will be automatically ended.
We hope that you can effectively use the market orders to enhance your trading experience and efficiency at minimizing the losses. Use these orders wisely to be a Forex expert and make constant profits.