Forex Orders Explained

A market order is an order to buy or sell which is to be filled rapidly at the current exchange rate quotation under normal market conditions. A market order is what you use when you want to execute an order immediately at the current market price, it is displayed as a bid or ask price. The information in this article is a brief introduction to understanding today's Forex Market Order.

Entry Orders: An entry order is an order that is executed when a particular price level is reached and/or broken. The execution of these orders are under the supervisor of the dealing desk and remain in effect until the client cancels the order.

Limit Entry Orders: This type of order initiates an open position to sell as the market rises, or buy as the market falls. The client believes the market will reverse the direction at the level of the order.

1. Buy Entry Limit: An order to buy at a price below the current exchange.
2. Sell Entry Limit: An order to sell at a price above the existing trade value.

Entry Stop Orders: All Entry Limit Orders work to initiate an open position to sell each time the market falls, or buy each time the market rises. The client believes that prices will continue to move in the same direction each time the previous momentum after hitting the order level.

1. Buy Entry Stop: An order to BUY at a price above the existing exchange value.
2. Sell Entry Stop: An order to SELL at a price BELOW the current trade value.

Limit Orders: A limit order is an order tied to a specific position for the purpose of locking in the gains from that position; while they are placed on a buy position it is an order to sell and limit orders placed on a sell position is an order to buy. All limit orders remain open until the position is liquidated or canceled by the client.

OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific market position. One order, the stop, is to prevent additional loss on the market position, and one order, the limit, is to take profit on the market position. When either order is executed, closing the market position, the other is automatic every canceled.

Stop-Loss Orders: A stop-loss is an entry order linked to a specific market position for the purpose of stopping the market position from accruing additional losses and a stop-loss order placed on a buy market position is a stop entry order to sell linked to that market position. A stop-loss order remains operational until the market position is liquidated or the client cancels the stop-loss order. While a stop-loss order on a sell market position is an order to buy that market position; keep in mind that each stop-loss orders remain operational until the market position is liquidated or canceled by the client.

Any stop-loss orders remain in use until the trade position is paid off or canceled by the client. While a stop-loss order on a sell trade position is an order to buy that trade position.