Posts Tagged ‘stop loss orders’
Forex Orders – Stop Loss Orders – Market Orders
January 22nd, 2009
There are a number of ways to place your initial order to buy or sell any currency pair.
Firstly there is what is called a “Market order”. A Market order is an order to buy or sell a currency pair at the real time market price. You get the price as it is at the time you click your mouse to make the order. When a market order is placed, you get whatever price the curency pair are being quoted at that time.
You also have the option to place what is called an “Entry order”. An entry order is an order to buy or sell a currency pair when it reaches a defined price target. You identify the defined price using your knowledge of technical and fundamental indicators or signals.
When you place an “entry order” to buy, you are simply saying "I want to buy this currency pair at a given future price and if it never reaches that price, I won’t purchase the pair."
‘Stop’ and ‘Limit’ orders are two alternative ways to exit a trade automatically after the trade is entered in to. They are commonly used as safety locks to avoid losing everything in a bad trade.
A “stop order” is used to stop losses. A “limit order” is used to claim your profits, and is used when you cannot monitor the market real time yourself.
You should always use stops and limits when trading the forex markets to minimise the risks from making bad trades.
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Posted in Forex Training | 
Tags: entry orders, forex orders, limit orders, market orders, stop loss orders, types of forex orders | 
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