Forex Orders Explained

Forex Order Types

A market order is what you use when you want to execute an order immediately at the current market price, they are displayed as a bid or ask price. The information in this article will help you to better understand the Forex Market Order. Basically the Forex Market Order is an order to buy or sell which is to be filled immediately at the prevailing currency price.

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 dealing desk supervisor and the order is in effect until canceled by the client.

Entry Limit Orders: These are orders that initiate an open position to sell when the market rises, or buy when 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 present market.
2. Sell Entry Limit: An order to sell at a price above the current exchange value.

Entry Stop Orders: These are orders that initiate an open position to sell whenever the market falls, or buy whenever the market rises. The client believes that prices will continue to move in the same direction whenever the previous momentum after hitting the order level.
1. Buy Entry Stop: An order to BUY at a price ABOVE the existing exchange.
2. Sell Entry Stop: An order to SELL at a price BELOW the current trade value.

Limit Orders: A limit order is an order tied to a specific position for the purpose of locking in the gains from that position. A limit order remains in use until the position is liquidated or canceled by the client.

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

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

Each stop-loss orders remain open until the exchange position is paid off or canceled by the client. While a stop-loss order on a sell exchange position is an order to buy that exchange position.
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