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Forex Order Types

Forex Order TypesTaking control of your portfolio means knowing what happens behind the scenes when you buy or sell an instrument and to use the knowledge when buying or selling. Listed below are the different types of orders that can be placed in the online trading platform:

  • Market Order: An order to buy or sell at the current market price to be filled immediately.
  • Limit Order: An order to buy or sell an instrument at a certain price only, executed when the market reaches the specified price level.
  • Stop Loss Order: An order instructing when to sell an instrument, once the specified stop price is attained or breached.
  • Buy Limit Order: A buy order is one that is placed below the current market price. If the market price drops to the level specified in the buy order, that order is then triggered.
  • Sell Limit Order: A sell order that is placed above the current market price. If the market price rises to the level of the sell limit that order is then triggered.
  • Buy Stop Order: A buy order that is placed above the current market price. If the market price rises to the level of the buy order that order is then triggered.
  • Sell Stop Order: A sell order that is placed below the current market price. If the market price falls to the level of the sell limit that order is then triggered.
  • One-Cancels-Other (OCO) Order: An order that consists of two separate orders in which, if one order executes, the other one is automatically cancelled.
  • Good Till Cancelled (GTC) Order: An order that will continue to work in the market until it's cancelled by the trader.

The basic order types such as market order, limit orders are usually all that most traders will ever need. However, it is very important that you make sure that you fully understand and are comfortable with the order entry system and the different types of orders before executing a trade.
Hint: You can place opposing orders to catch a breakout in either direction and minimize your loss with a stop loss.