Main trading stages. Various kinds of orders. Example of work on a transaction
Trading process in the Forex market can be divided into two stages: "Waiting" and "Trade". These steps are permanently alternate. You cannot always trade (at least because in every strategy there are times when it makes sense to enter the market, and sometimes it is better to be out of the market). However, you do not have to waste your time during "Waiting". Usually, during "Waiting" a trader analyzes the market (see. Sections II and III of this course), keeps records and analyzes the past transactions (correction of errors).
Here we will have a closer look at the trading process and describe the life stages of any operation. So, a full operation of purchase and sale of a foreign exchange contract (sometimes called “a round turn") consists of the following stages:
The described operation lifespan is a kind of an "ideal" variant, which we provide as an example. In fact, it should be considered that not every placed order leads to the opening of the transaction. Order execution also has certain features. In addition, the closing of a transaction may occur as a result of a situation when the amount of free funds on the account is not sufficient to maintain the position (margin call or stop-out) and not as a result of execution of an order by a broker, when the order was submitted by a trader. In this course, however, we have no possibility to cover all the details. This is the task of the company’s specialized courses.
There are several types of market orders.
It is recommended to read the relevant provisions of the trading regulations by your broker to find out more about the types of orders, as well as about the peculiarities (terms) of their execution.Prev Next
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