Types of Forex Orders

Source: DailyFX 2020-05-22

There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Knowing what these are and having a firm understanding can help traders to enter and exit the market appropriately. Order types allow for bespoke trading styles that can provide equanimity for the trader. This article will discuss the main forex orders and how they can be utilized on a live trade.

MARKET ORDERS

The market order is probably the most basic and often the first FX order type traders come across. Just as the name implies, market orders are traded at market. This means if you want to get into the forex market immediately, you can trade a market order and be entered at the prevailing price.

Typically, scalpers and day traders rely on market orders to enter and exit the market quickly, in accordance to their strategy.

Example:

The EUR/USD deal ticket below shows live prices to buy and sell. A market order to buy at 11392.9 would execute immediately at the current price. The same will apply to a short position.

ENTRY ORDERS

The next most common FX order type is the entry order. These orders are unique in that they can be set away from present market prices. If price trades at the pre-selected price, the criteria for the entry order will be met and a new position will be created. There are many benefits to trading with entries, including not having to be in front of your computer to execute your trades! See more on how to be a part time trader.

Normally entry orders can be used for breakouts or with other strategies that demand execution when price passes a certain point.

forex

Market Orders

Entry Orders

Types of Forex Orders

Forex Orders

Types of Forex Orders

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