Market And Limit Orders
These two orders are the most common orders for Forex trading. A market order is completed straight away at the current market price. A market order is executed at the best available price, depending on market liquidity. The best aspect of a market order is the speed; you are able to enter or close a position right away.
The limit order is the other regular way of ordering in Forex trading. The limit order provides an option for you to place a price at which they want to buy or sell a currency pair. For a buy limit order, the currency pair will be purchased at the limit price or lower, and for a sell limit order, it will be sold at the limit price or higher.
Stop Orders And More
Stop orders or stop-loss orders are an important risk management tool in Forex trading. It automatically closes a position when the price moves against you to a pre-set level. The main benefit of a stop order is that it helps you manage your risk by limiting potential losses, but they are executed as market orders once triggered, which means the actual execution price may be slightly different from the stop price, especially during periods of high volatility.
On this course, you will learn all about these types of orders and their uses. You will learn what a stop limit order is and why it will only be executed at the limit price or better. What a trailing stop order is and why it follows the market price as it moves in the trade’s favour. You will be taught why a trailing stop order is set a certain number of pips away from the market price and how it locks in profits by allowing you to continue riding the market’s movement without manually adjusting the stop-loss level.
In addition, you will be shown what an OCO (One-Cancels-the-Other) order is and how this type of order is really two orders in one, and how it is useful when you want to automate your trade management by setting both a target price and a stop-loss level.
You’ll learn all of these and much more about the many types of Forex trades, and you’ll be armed and set, ready to take on the Forex market and start your journey into trading.
