Types of Forex Orders - Different Types of Forex Orders
Types of Forex Market Orders Forex Trading and Types of Pending Orders Forex Trading
Different types of forex orders which a trader can use to trade forex - The Different Types of Forex Orders are:
Types of Forex Market Orders
Forex Market Order
Market Order is the most basic type of forex order, market order is used to buy or sell at current request or bid forex quote price. This refers to the quoted price that appears on your forex trading platform.
Market Order type of forex order is used for buying or selling according to the present exchange rate quote - the execution of market order is instant. The minute you want to enter a forex trade you can buy & sell at a click of a button using a forex market order.
Types of Forex Pending Orders
Limit Forex Orders and Stop FX Trading Orders
Pending Orders are forex orders which are used to open a new forex trade position after the market reaches a price specified by the trader.
Pending Orders are used to buy or sell when price quote attains a certain price target.
When a specific forex price level is reached then a forex pending order is executed.
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 & this is why a forex pending order can be used. If you feel the forex market may take a certain action, such as break through a specific forex price level that it has been touching but it hasn't been able to break this level, then as a trader you would want to use a Forex Pending Order. Once the forex price quote crosses your specified level, your pending order is executed.
There are 2 types of pending orders - limit order & stop order.
These pending orders are also referred to as entry orders.
Limit Forex Order
An order to buy or sell at a specific limit.
An entry limit order can be used to buy below the current forex price quote or sell above the current forex price quote.
When buying, entry limit order is executed when the price falls to your limit forex price quote level.
When selling, entry limit order is executed when the price rises to your limit forex price quote level.
These Entry Limit Orders are placed by traders when they expect the forex price to bounce back after reaching the price quote level at which the entry limit order was placed.
- Buy Limit Order Specifies to buy at a level below the current forex trading market price
- Sell Limit Forex Order Specifies to sell at a specified level above current market price
How to Set Buy Limit Orders & Sell Limit Orders on MetaTrader 4 - Forex Pending Orders in MT4
Entry Stop FX 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 forex order is executed as the forex market goes up & hits the buy stop price quote level.
When selling, entry stop forex order is executed as the market goes down and hits the sell stop forex price quote level.
- Buy Stop Forex Trading Order Specifies to buy at a level above the current forex market price.
- Sell Stop FX Trading Order Specifies to sell at a level below the current forex market price.
How to Set Buy Stop Orders & Sell Stop Orders on MetaTrader 4 - Forex Pending Orders in MT4
