1、CHIFLEY: Order Type for Forex TradingIf you are a newcomer to Forex, you may know how to start a simple buy or sell transaction at your preferred broker, but you may not realize that you have a variety of different ways to enter your trade ( That is, the order type).Market orderMarket orders are per
2、haps the most common way to enter. Market orders are used to enter the market at the best available price. In other words, if you trade EUR/USD at a selling price of 1.3280 and you set a market order, you will buy the pair at the best price of 1.3280.The only time you should be cautious is when mark
3、et orders are in a non-current market. For example, suppose you create a market order that buys EUR/USD. If the market is very volatile, EUR/USD may gap at the next beating point and your best available price may be higher than your expected price.Limit orderLimit orders are used when you want to bu
4、y at a price lower than the current price or at a price higher than the current price.Therefore, if the EUR/USD current transaction price is 1.3280 and you want to buy it at 1.3270, you can create a limit order below the market price. Usually, when you want to enter at a better price, you will use a
5、 limit order.Stop orderA stop order can be used to enter at a price above or below the current price without waiting for the market price to actually reach that price.For example, suppose you want to buy EUR/USD when it breaks through 1.3290, but the current price is only 1.3280. You can create a st
6、op loss order so you can enter when the price hits 1.3291.If you want to learn more about it, we also provide you with more details about pending orders (limit and stop loss).Stop orderStop orders for closing positions are the best way to help you protect your money. This safe ordering method ensure
7、s that your losses do not exceed a certain amount when your transaction is not good for you.For example, if you buy EUR/USD at 1.3280, you can create a stop order at 1.3260, which means your loss will not exceed 20 points.The only thing that will cause your loss to exceed a certain amount is that th
8、e market has a gap below the stop loss level, causing your order to be triggered at the next best price. The chances of this happening are minimal.Trailing stop orderStop loss orders can help you track the market when you dont want to spend your time on your computer screen. You can create a trailin
9、g stop order at a specified price that is far from the market price, so that the stop loss moves up or down with your trade, thereby locking a certain amount of profit.For example, suppose you buy EUR/USD at a price of 1.3280 and set a trailing stop at 10 points. When EUR/USD rises to 1.3300, your trailing stop will rise 20 points to 1.3290, and you will lock in 10 points.
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