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What are the Types of Forex Orders?
The term “order” refers to how you will enter or exit a trade. Here we have discussed different types
of forex orders which are placed while trading. Improper execution of orders may cause you loss in
forex trading. The first step in placing an appropriate order is that to know which types of orders
your broker accepts.
Here is the information about some basic types of orders which are available at almost all brokers.
Market order: This is known as the most common and simple type of forex order. This is used
when you want to execute order immediately at the market price. It allows you to buy and sell
currencies at the best available price. For example, the current bid price for EUR/USD is 1.2139
and the ask price is 1.2141. If you want to buy EUR/USD currency pair, then it would be sold to
you at 1.2141.
Stop-Entry order: This is used when you feel that the forex rate will move in one direction. While
placing entry order to buy, the stop entry will be placed above the current market price. On the other
hand, while placing an entry order to sell, the stop entry will be placed below the current market
Stop loss order: It is used to reduce the risk of losing money. If market moves to unfavorable
conditions, setting a stop loss order at a specific target price helps you to prevent additional loss.
Trailing Stop: It is attached to a trade which moves when the price fluctuates.