Traders place different types of Forex orders in Forex Trading. Forex trading involves different types of Forex orders. Here the question arises what is meant by an order? When you enter or exit a trade opportunity, it is called an order.
Types of Trade Order
Different brokers and agents prefer and accept different kinds of orders. Some widely accepted kinds of orders are:
The order to trade at a certain price is called a Market Order. It is just like online shopping. You can buy or sell a currency just like any other commodity. For example, if you are trading EUR/USD and it’s asking price of 1.2740, If you want to buy at this price then just click once and your order to buy the currency is executed
This order is a risk management technique to get rid of any avoidable loss if the price shifts against your position. If you have planned a long-term trade, then it is selling Stop Order. While on the other hand, if you are interested in short-term trade then it is bought Stop Order.
This order ‘Good for the Day’ is open till the end of a trading day in the U.S.A. However, your broker can further guide you in this regard.
Good Till Canceled
This order is solely your responsibility as your agent or broker will never cancel an order. Thus it is active until you want to cancel it.
This type of order is a pair of two orders. Two orders with different price and timings are placed at the same time. Obviously, if one order is dealt, the other order is automatically cancelled.
This order is also a pair of trades. If one order is placed then it automatically puts on another trade.
Thus there are different types of trade orders in Forex trading. You need to fully grasp the broker’s orders to take full advantage of Forex trading.