Forex Orders - Forex Market Execution Order vs Forex Pending Orders
There are different types of forex orders which a trader can use to trade in Forex.
The most important thing to remember about forex trading orders is this: Always understand the forex orders you place when forex trading. Never place a FX order which as a trader you are not entirely knowledgeable about. Below are the some basic definitions and explanations of the commonly used forex orders - types of forex orders explained:
Types of Forex Orders - Forex Market Execution Orders and Pending Orders
Market Execution FX Trading Order
This is the most basic type of forex order, Market Execution Order is used to buy or sell at the current ask or bid quote price. This Market Execution Order refers to the quoted price that appears on your forex trading platform.
This type of forex order - Market Execution Order - is used for buying or selling at the current exchange rate quote in Forex, the execution of this forex order is instant. The min you want to enter a position you can buy and sell the currency at a click of a button key using a forex Market Execution Order - also known as a Market Order or Market Instant Execution Order.
Pending Forex Trading Orders
These are forex orders used to open a new forex trade position after the forex market reaches a price specified by the trader.
Forex Pending Orders are used to buy or sell a forex currency pair when the currency pair attains a certain price target.
When a specific price level is reached or broken then a forex Pending Order is executed.
These Forex Pending Orders are used to enter a forex trade at a specified price level. It is almost impossible to monitor the forex market every second and this is why a Pending Order can be useful when trading forex. If you feel the market may take a certain action, such as break through a specific price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Order - Forex Pending Order. Once the market crosses your specified level, your entry limit trade order is executed.
There are two types of Forex Pending Orders - Entry Limit Order & Entry Stop FX Trading Order.
These Pending Orders are also referred to as Entry Limit Orders or Entry Stop Orders.
Entry Limit Order - Forex Pending Order
An order to buy or sell at a particular limit.
An Entry Limit Order - Forex Pending Order can be used to buy below the current price or sell above the current price.
When buying, entry limit order is executed when the price falls to your limit level forex price.
When selling, entry limit order is executed when the price rises to your limit level forex price.
These Entry Limit Order - Forex Pending Orders are placed by traders when they expect the market to bounce back after reaching the price level at which the entry limit order was placed.
- Buy Limit Order - Forex Pending OrderSpecifies to buy at a level below the current forex market price
- Sell Limit Order - Forex Pending OrderSpecifies to sell at a level above the current forex market price
How to Set Buy Stop and Sell Stop Orders on MetaTrader 4 - How to Place a Pending Order in MT4
Entry Stop Forex Trading Order
An entry stop pending order is an order to buy above the current forex price or to sell below the current forex price.
When buying, entry stop order pending order is executed as the market goes up & hits buy stop level.
When selling, entry stop order pending order is executed as the market goes down & hits the sell stop level.
- Buy Stop Order - Forex Pending OrderSpecifies to buy at a level above the current market price.
- Sell Stop Order - Forex Pending OrderSpecifies to sell at a level below the current market price.
How to Set Buy Stop and Sell Stop Orders on MetaTrader 4 - How to Place Forex Pending Orders in MT4
