The Types Of Orders In Forex
Similar to the notion of “order” in the restaurant; in Forex trading, it suggests how we want “order” open-position or close-position, or willing to message for now or later. Whether to buy/sell at the price, how to position trading will be closed, and so on.
that is The Types Of Orders In Forex
Let us learn one section, what are Types Of Orders In Forex and understanding before you go any further
1. Types Of Orders In Forex: Market orders
This Types Of Orders In Forex is the simplest. Market order is an order type buy/sell at the best available price in the market. For example, the bid price on the EUR/USD is currently at 1.2140, and the ask price at 1.2142. If we want to buy EUR/USD at market price, then it will be “sold” on us with price 1.2142. We’ll click “buy” on the trading platform, and the platform will directly execute order buy at these prices. Simple, isn’t it? It’s like buying items in the online shop, it’s just that we buy new clothes instead.
2. Types Of Orders In Forex: Limit Entry Order
“A Limit entry order” is a Types Of Orders In Forex that is placed to buy below market price now, or sell above the market price now.
For example, the EUR/USD is currently traded at a price of 1.2050. We want to open a short position if the price reaches 1.2070. We can just wait until either when the price reaches 1.2070 and clicking sell with orders we could also put up a “sell” with a limit entry order now, and then left to go. If later the price indeed rises up to 1.2070, then the trading platform will automatically open a position sell at the best price at that time.
Traders can benefit from this type of order, if it believes that prices will turn around after reaching a certain level, or in cool, reversal.
3. Types Of Orders In Forex: Stop-Order Entry
“Stop entry order” is one types of order in forex that can be used when we want to open a buy position above the market price now, or sell below market prices now. This is used when we estimate the price will keep moving in the same direction to one.
For example, GBP/USD currently traded at 1.5050 and appears to be moving upwards. We think that the price will continue to climb when already touched 1.5060. Next, we can wait until the price reaches new then click 1.5060 “buy” with market orders, or now we put stop-entry order at 1.5060.
4. Types Of Orders In Forex: A Stop-Loss Order
“The Stop-loss order” is Types Of Orders In Forex used to prevent loss so much worse, if the price moves in a direction not suspected. This type of order is installed after we open the order “buy” or “sell” with any type of order, and will continue to apply until the stop-loss order is repealed or our trading position is covered.
For example, we open a long position of EUR/USD at 1.2230. To limit the maximum loss, then we put a stop-loss at 1.2200. That is, if we’re wrong predictions and the EUR/USD fell to 1.2200, then the trading platform will automatically close the position it was also trading with our 30 pip loss results.
It sounds bad, but it could be better, than if the price turns out to be a move to 1.2100 and we don’t install a stop-loss at all and then it turns out that loss 130 pips! Stop-loss is very useful if we don’t want to sit in front of a monitor all day after the open position.
5. Types Of Orders In Forex: Trailing Stop
Trailing stop is an Types Of Orders In Forex variation of stop-loss order placed on a trading position, but can be change along with price fluctuations.
Let’s say there’s a position short USD/JPY at 90.80, with 20 pip trailing stop. This means that the initial stop-loss is at 91.00. If the price turns out to be running down in accordance with the estimate, and then touching 90.60, then the trailing stop will automatically move forward 20 points to 90.80 (break even).
Once trailing stop switch, then it will settle in the level. So, suppose that the price then turned down again until it touches the 90.80, then the position will be closed immediately.
Related post: what the best time for trading?? find out the answer here : Forex Trading Sessions
To keep in mind, not all brokers provide all Types Of Orders In Forex. So, if we want to use a type of order in forex, ensure our brokers provide the kind of order that. Make sure it is completely familiar with the system order on a broker before starting forex trading.
Well, if still confused about how to forex trading?
Hands-on course with virtual funds on a demo-account, repeat, and continue to learn graphics, before suck you in raw graph when the real trading. Keep trading in demo account while you study until we feel comfortable and can develop a profitable system, before opening a real account and use all our possessions as capital.
ONCE AGAIN: KEEP TRADING ON A DEMO ACCOUNT UNTIL IT FINDS THE CHARACTER OF TRADERS AND OUR TRADING STYLE, AS WELL AS DEVELOP A PROFITABLE SYSTEM. It is the most important and basic lessons that should be remembered by all the newbies like us.
Finally, Forex is complicated but if we know the special trick ,, you never get loss – Types Of Orders In Forex