Forex Orders Explained

Basically the Forex Market Order is an order to buy or sell which is executed immediately at the current currency price. Orders are displayed as either a bid or ask price. The information in this article is a brief introduction to understanding today's Forex Market Order.

Entry Orders: An order used to enter a trade once a currency pair hits a pre-determined price level. The execution is handled by the dealing desk supervisor and the order is in effect until canceled by the client.

Limit Entry Orders: Limit entry orders are executed when the exchange rate touches (not breaks) a specific level. The client placing a limit entry order believes that after touching a specific level, the rate will turn in direction of its previous momentum.

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

Entry Stop Orders: An order initiating initiating an open position to sell each time the market falls, or buy each time the market rises. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction.

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

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 operational 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 position. The stop order, is to prevent additional loss on the position, and the other limit order will make a profit on the position. When either one is executed, closing the position, the other is automatic each canceled.

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

While a stop-loss order on a sell market position is an order to buy that market position. All stop-loss orders remain in effect until the market position is liquidated or canceled by the client.