Placing orders appropriately in forex market is really an important factor which you must know. Similar to stock market, forex trading also involves various types of orders which are implemented to control trade effectively.
It should be noted that, inappropriate use of order can negatively affect entry & exit points while trading. In addition, placing an order should be implemented as per your entry & exit strategy in the FX market. The blog uncovers the types of trading orders in forex market to assist you for accurate entry & exit.
Market order is the most regular type of forex order. This order is implemented when executing an order during the current price. If you’re buying currency, market order will perform trading at the current ask price and during the selling of currency, the market order will perform at the bid price. To implement the order in an appropriate way, it’s helpful to Forex trading tipsto get proper entry/ exit.
Entry order is executed once the currency pair outreaches a particular target price. Entry order acts as a best Forex signal provider at the time of buying a currency pair at a particular price & unable to reach the target price.
It’s an order that is used to limit the losses, once your specified currency price reaches to profit level. Stop order helps to enter in a new position as well as to exit automatically.
If executing a stop order to enter into a position, it is termed as ‘Buy stop order’ & provides Forex signals for buying a currency pair as per the market price.
Similarly, implementing a stop order for exiting a trade, it is termed as ‘Sell-stop order’ and provides signals to sell out the currency pair as per the market price.
A limit order is a kind of instruction for buying & selling a currency at a specific price limit. A limit order (buy) is a signal for buying the currency pair as per the market price or when the market reaches your specified price.
A limit order (Sell) is a signal to sell out the currency at the market price when the market reach your specified price or get high.
When it comes to place the trade, you must know where to take profits from. A limit order is a profitable order which allows you to exit the market as per your objective. The limit sell order is positioned above the current price whereas the stop-loss order is positioned below the market price.