Types of Forex Orders
There are some basic order types that all brokers provide and some others that sound weird. Orders fall into two buckets:
1)Instant marker execution/ Market order: an order is instantly executed against a price that your broker has provided.
2)Pending order: an order to be executed at a later time at the price you specify.
Pending Orders – Limit Order/ Stop Orders Limit Order – A limit order is an order placed to either buy below the market or sell above the market at a certain price. This is an order to buy or sell once the market reaches the “limit price”. • You place a “Buy Limit” order to buy at or below a specified price. • You place a “Sell Limit” order to sell at a specified price or better. Once the market reaches the “limit price” the order is triggered and executed at the “limit price” (or better).
Pending Orders – Limit Order/ Stop Orders Stop Order – A stop order “stops” an order from executing until the price reaches a stop price. You would use a stop order when you want to buy only after the price rises to the stop price or sell only after the price falls to the stop price. A stop-entry order is an order placed to buy above the market or sell below the market at a certain price. • You place a “Buy Stop” order to buy at a price above the market price, and it is triggered when the market price touches or goes through the Buy Stop price. • You place a “Sell Stop” order to sell when a specified price is reached.