Practicing trading in the forex market is not a difficult job. All it requires is knowledge and patience which you must gain as a beginner. When I started as a newbie in the Forex market, I often used to ask the question what is the need of a forex trading course and with the passage of time I gradually came to know about its importance in the trading business. A forex trading course does not only educate you about its different strategies and protocols but also make you aware of the types and uses of different Forex orders.
What does the term refer “forex orders”?
The term “forex orders” refer to the situation when a trader opens and exits a trade. There are different types of orders evolved in the forex market, and they are used by traders to control the positions of their trades. But before you start using a forex order, you must be aware of its uses so that you can make the most out of the forex market. So here, we will discuss the types of forex orders and how you can place them effectively in the Forex market.
Different types of forex orders
This entry order is used by a trader for entering into the trading business once a pair currency hits the pre-determined level of the forex market.
Entry limits order
This entry limit Forex orders is used for initiating a market order or an open position to sell as soon as the market price increases. The client exercising this limit order believes that the position of the market may move in the reverse direction as well at any point of time.
This entry limit order also involves two other types of limit orders such as – buy entry limit order and sells entry limit order.
Buy Entry limit: It is a type of limit order which is bought at a below-market price.
Sell Entry limit: This order is offered to sell at an above-market price.
Entry stop order
This entry stop order is used to initiate sell of an open position in the market when the price falls and vice-versa. A trader placing an entry stop order believes that the price of trade may move in the reverse direction after attaining the order level.
This particular order is used by a trader for securing the profits gained from a particular trading position. When a trader places a limit order in a buying position, it means he or she wishes to sell the order. On the other hand, a limit order retained on a sell position means this order is open to buy. These limit orders will be effective unless and until a trader liquidates or cancels his trading position in the market.
This is a kind of order which is used to buy or sell a trade at the current market price.
Stop loss orders
This order is used by a trader for closing a specific position that has the possibility to make losses in the future. A trader will only be able to use this order when the displayed price equals to the order price. When a trader places a stop loss order on buying position, it means the trader wishes to sell his trade. Similarly, when a stop loss order is placed on a selling position, it means the position is open to buy. All stop loss orders will be effective unless and until the position is canceled or liquidated by the trader.
These are multiple types of forex orders where each one has its own specific purpose and use. So, before you start using these orders to control your trading position, make sure you have gained enough knowledge on them.