Skip to main content

BASIC TYPES OF FOREX ORDERS

Different market entry and exit orders are being required for different trading scenarios and Forex Trading. The following are some basic types of Forex Orders:
Equidious Research-TYPES OF FOREX ORDERS

Market Order 

This is the simplest way to enter the market, whether you are going long or shorting. By taking a market order, a trader enters the market at the best possible price at that given time. The order is filled straight away.

Buy Limit 

This order anticipates a bounce in an upward direction from the current down-trend. Therefore, an entry point is created below the current market price.
Once the entry price is reached the order is triggered to go long. The stop loss is below and the profit target is above the entry level.

Sell Limit

Opposite to the Buy Limit, this order type anticipates the market to bounce downwards from the current up-trend. An entry point is created above the current market price.
Once that price level is reached, the order is triggered to go short. The stop loss is above and the profit target is below the entry level.

Buy Stop

This type of order anticipates the current up-trend to continue rising. Therefore, an entry point is created above the current price. The stop loss is below and the profit target is above the entry level.

Sell Stop

This type of order anticipates the current down-trend to continue falling. Therefore, an entry point is created below the current market price. The stop loss is above and the profit target is below the entry level.

Stop Loss(SL)

This is the point at which the market proves you are wrong - no matter what type of order you are using. Traders should always trade with a stop loss. If a trade is wrong and the market goes in the opposite direction of the trade, it is the safest and quickest way to stop any further losses.

Profit Targets

This is the end point for your order i.e. the point at which you have made the required profit and you are closed out of the market.

For the Best Forex Signal| Accurate Stock Signal| Profitable Comex Signals, Try Equidious Research Services. We have a team of best and well experienced Research Analysts.

Trading is an art of making handsome amount.

Enjoy Trading!

Comments

Popular posts from this blog

Fundamental Analysis-Impacts of Non Farm Payrolls Data on Forex Market

Non farm payrolls in the US increased by 164 thousand in April of 2018, following an upwardly revised 135 thousand in March and well below market expectations of 192 thousand.  The most important payroll statistic that is analyzed from the report is the  non-farm payroll  data, which represents the total number of paid U.S. workers of any business, excluding general government employees, private  household employees , employees of  nonprofit  organizations that provide assistance to individuals, and farm employees. Non Farm Payrolls Indicator The Non Farm Payrolls indicator measures the net change in the number of people employed within the U.S. economy in jobs other than those which are farming or agriculture related. When the NFP data is rising, it means businesses within the United States are hiring more staff, usually in response to improved economic conditions and increased demand for their products or services either domestically or overseas...

Know More About- Commodity Currencies Trading

Currencies of countries that rely heavily on the export of  commodities  are often referred to as  commodity currencies . An important factor that any  forex trader  should consider is that the value of commodity currencies usually rise and fall in tandem with the value of the country's main commodity exports. What Are Commodity Currencies and Pair: Both the value of the  commodity  and the country's trade balance, with respect to the commodity, are significant factors in the valuation of commodity currencies. The most commonly traded commodity currencies are: Canada (CAD) New Zealand (NZD) Australia (AUD) The three  commodity pairs  are: USD/CAD AUD/USD NZD/USD These  pairs  are highly correlated to  commodity  fluctuations in the world markets and are the most heavily traded  commodity pairs  in  forex .  Forex  traders often trade these  commodity pairs  to gain expos...

TOP 7 MISTAKES IN FOREX TRADING

NO TRADING PLANS: A trading plan is a strict set of rules, half of which a trader draws from their trading strategy and the other one from their money management strategy. The plan may be then complemented by as many more points as the trader sees fit. WHAT IS TRADING PLAN: Specific market conditions for entering a trade; The amount of money to risk in a trade; Specific market conditions to get out if you are wrong (stop-loss); Specific market conditions to get out if you are right (take-profit); Approximate time for the market to reach your target; Note down and record everything! Write this list down as postulates and have it front of you before, after, and during your trading. RISKING TOO MUCH ON ONE TRADE: Never take too much risk in one trade. Forex brokers are allowed a lot of freedom in terms of leveraging their trading account, while beginner Traders lag behind in money management discipline. A combination of these two leads to high risk, hazard trading. Always...