Forex orders come in a wide variety, and traders use them to control their transactions. There are typically a few standard FX order types that all brokers accept, even though they may vary across various brokers. Strong knowledge of these might aid traders in making the proper market entries and exits. Order types provide customized trading strategies that may give the trader calm. The primary forex orders and how to use them in a live transaction will be covered in this article.

MARKET ORDERS

The market order is most likely the simplest and often the first form of FX order that traders encounter. Market orders are exchanged at the market, just as their name suggests. This implies that you may trade a market order and be entered at the current price immediately if you wish to trade in the currency market.

Scalpers and day traders often use market orders to fast enter and leave the market in line with their strategy.

Example:

Live buy and sell prices are shown on the EUR/USD trade ticket below. A market order to purchase at 11392.9 would be filled immediately at the current price. Similarly, a short position will be valid.

ENTRY ORDERS

The entry order is the second most typical sort of FX orders. These orders are distinctive in that they may be placed outside of the current market rates. The requirements for the entry order will be satisfied, and a new position will be formed if the price trades at the previously chosen price. Trading with an entry has numerous advantages, one of which is that you don’t need to conduct transactions in front of a computer. Learn more about being a part-time trader.

Entry orders are often helpful for breakouts and other techniques that need execution when the price reaches a specified level.

LIMIT ORDERS

In forex trading, limit orders come in two varieties:

1.) Limit orders to start a trade

The first is a limit entry order to get a higher entrance price. You would set your limit order to purchase at 1.1200 if the EUR/USD was trading at 1.1294 and you anticipated it would decline to 1.1200 before reversing course.

If you anticipated that the EUR/USD would climb to 1.1300 before falling, you would set a limit order to sell 1.1300 if the price of the currency pair was now trading at 1.12939. You will only be filled using a limit order at the specified price or above.

2.) Limit orders to end a trade

A limit order may also be used to conclude a deal when the market swings in your favor by a certain amount. You would set your sell limit order 100 pip above your entry or at the 1.1400 level if you purchased the EUR/USD at 1.1300 and intended to sell when your trade showed a profit of 100 pip.

You would set your purchase limit order 100 pip below where you entered or at the 1.1200 level if you sold the EUR/USD at 1.1300 and want to close your position when your trade showed a profit of 100 pip.

A limit order’s visual depiction on a forex chart:

STOP ORDERS

Two types of stop orders are regularly used in forex trading:

1.) Stop orders to initiate a trade

A stop order is used to enter the market as the initial step. You may trade breakouts with these orders. You would set a buy stop for entry at 1.1501 if you believed that the EUR/USD would continue to rise after crossing the 1.1500 mark. Your buy stop would become a market order and be completed at the following best price as soon as the market printed 1.1501.

You would set your sell stop for entry at the 1.1199 level if you believed that the EUR/USD would keep falling if it traded below the 1.1200 level. Your sell stop would become a market order and be completed at the next best price as soon as the market printed 1.1199.

2.) Using stop orders to end a trade

A protective stop order may terminate a transaction when the market moves a predetermined amount in the opposite direction of your position. Put your protective sell stop 50 pip below your entry or at the 1.1450 level if you purchased the EUR/USD at 1.1500 and intended to keep your risk to 50 pip.

Put your protective buy stop 50 pip above your entry, or at the 1.1450 level, if you sold the EUR/USD at 1.1400 and intended to keep your risk to 50 pip.

A stop order’s visual depiction on a forex chart:

A GUIDE TO MAKING A FOREX ORDER

Forex orders may be placed relatively quickly, depending on the broker. All significant platforms should adhere to the following standards:

• The “Order” tab may be found by opening a deal ticket.

• Select the trade’s direction (Buy or Sell).

• The kind of order will be decided by the price level you provide, depending on whether it is above or below the current market price.

• Set boundaries or stops.

• Place an order.

It’s crucial to remember that before engaging in any trading activity, you should get acquainted with the platform you will be using. This may reduce any illogical mistakes made while executing or maintaining a deal.