Forex Order Types

Forex Orders

A market order is an order to buy or sell which is to be filled rapidly at the current exchange rate quotation under normal market conditions. A market order is what you use when you want to execute an order immediately at the current market price, it is displayed as a bid or ask price. The information in this article is a brief introduction to understanding today's Forex Market Order.

Entry Orders: An order used to enter a trade once a currency pair hits a pre-determined price level. The execution is handled by the supervisor of the dealing desk and the order is in effect until canceled by the client.

Limit Entry Orders: This type of order initiates an open position to sell as the market rises, or buy as the market falls. The client believes the market will reverse the direction at the level of the order.
1. Buy Entry Limit: An order to buy at a price below the current market.
2. Sell Entry Limit: An order to sell at a price above the existing exchange.

Entry Stop Orders: All Entry Limit Orders work to initiate an open position to sell each time the market falls, or buy each time the market rises. The client believes that prices will continue to move in the same direction each time the previous momentum after hitting the order level.
1. Buy Entry Stop: An order to buy at a price ABOVE the existing market value.
2. Sell Entry Stop: An order to sell at a price BELOW the present exchange.

Limit Orders: A limit order placed on a Buy position is a limit entry order to SELL that position; this is for the purpose of locking in the gains on an existing position. A stop-limit order remains open until the position is liquidated or the client cancels the stop-limit order.

OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific trade position. One order, the stop, is to prevent additional loss on the trade position, and one order, the limit, is to take profit on the trade position. When either order is executed, closing the trade position, the other is automatic any canceled.

Stop-Loss Orders: A stop-loss is an entry order linked to a specific trade position for the purpose of stopping the trade position from accruing additional losses and a stop-loss order placed on a buy trade position is a stop entry order to sell linked to that trade position. A stop-loss order remains valid until the trade position is liquidated or the client cancels the stop-loss order. While a stop-loss order on a sell trade position is an order to buy that trade position; keep in mind that any stop-loss orders remain valid until the trade position is liquidated or canceled by the client.

Each stop-loss orders will stay open until the debt trade position is either settled or canceled by the client. While a stop-loss order on a sell trade position is an order to buy that trade position.
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