An order is an offer to begin or terminate a transaction using the trading platform of your broker, provided that the conditions outlined by you are met.
In essence, an “order” describes your transaction plan of entry or departure.
The many order types that may be made in the forex market are covered in this section.
Ensure that you comprehend the kinds of orders that your broker takes.
Different brokers accept different kinds of FX orders.
Types of Orders
Every broker offers a few standard order types, while others have strange names.
Market order: an order that is immediately filled about a price that your broker has specified.
A pending order will be filled at the price you designate at a later date.
Order of Markets
An order to purchase or sell at the best price available is known as a market order.
For instance, the current bid and ask prices for EUR/USD are 1.2140 and 1.2142, respectively.
The price at which you would be able to purchase EUR/USD at the market would be 1.2142.
Your trading software would immediately execute a buy order at that (ideally) precise price as soon as you clicked “buy.”
Limitation Order:
An order to purchase below the market or sell above the market at a specific price is known as a limit order.
When the market hits the “limit price,” this order is to purchase or sell.
To purchase at or below a given price, you submit a “Buy Limit” order.
A “Sell Limit” order is placed by you to sell at a given price or above.
The order is initiated and executed at the “limit price” (or higher) as soon as the market hits that point.
For instance, the current trade price of EUR/USD is 1.2050. If the price hits $1.2070, you should sell.
One option is to wait for it to reach 1.2070 by sitting in front of your computer, at which point you would click on a sell market order.
Alternatively, you may place a sell limit order at 1.2070 and then leave your computer to go to your ballroom dancing lesson.
Your trading platform will automatically execute a sell order at the best available price if the price rises to $1.2070.
This kind of entry order is used when you think the price will go back up once it reaches the desired price!
Execution of a limit order to buy at a price lower than the current market price will occur at a price that is either the same as or lower than the designated price.
The execution price of a limit order to sell at a price higher than the current market price will be at least the specified price.
Order for Stop Entry
Until the price hits a stop price, a stop order “stops” an order from executing.
When you wish to purchase only after the price reaches your stop price or sell only after the price reaches your stop price, you would use a stop order.
An order to purchase above the market or sell below the market at a specific price is known as a stop-entry order.
When the market price approaches or crosses the “Buy Stop” point, you can submit an order to buy at a price above the market price.
A “Sell Stop” order instructs you to sell at a specific price.
For instance, the GBP/USD exchange rate is rising and is presently trading at 1.5050. If the price reaches 1.5060, you think it will keep going in this way.
To play this belief, you can do one of the following actions:
When the market reaches 1.5060, sit in front of your computer and make a purchase OR
Establish a 1.5060 stop entry order.
Order to Stop Loss
a directive to exit the trade at a predetermined price, which might indicate a profit or loss.
An order associated with a transaction that is meant to limit further losses in the event that the price moves against you is known as a stop loss order.
It is a sell-STOP order if you are in a long position.
