Forex Orders Explained

Forex Order Types

Basically the Forex Market Order is an order to buy or sell which is executed immediately at the current currency price. Orders are displayed as either a bid or ask price. The information in this article is a brief introduction to understanding today's Forex Market Order.

Entry Orders: An entry order is an order that is executed when a particular price level is reached and/or broken. The execution of these orders are under the dealing desk supervisor and remain in effect until the client cancels the order.

Limit Entry Orders: An order initiating an open position to sell when the market rises, or buy when the market falls. The client believes the market will turn in direction at the level of the order.
1. Buy Entry Limit: An order to buy at a price below the current exchange value.
2. Sell Entry Limit: An order to sell at a price above the present exchange.

Entry Stop Orders: These are orders that initiate initiating an open position to sell whenever the market falls, or buy whenever the market rises. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction.
1. Buy Entry Stop: An order to buy at a price ABOVE the present exchange.
2. Sell Entry Stop: An order to SELL at a price below the existing exchange.

Limit Orders: A limit order is an order tied to a specific position for the purpose of locking in the gains from that position. A limit order remains in effect until the position is liquidated or canceled by the client.

OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific trade position. One order, the stop, is to prevent additional loss on the trade position, and one order, the limit, is to take profit on the trade position. When either order is executed, closing the trade position, the other is automatic a canceled.

Stop-Loss Orders: An order linked to a specific market trade position to close that market trade position and prevent additional losses. A stop-loss order will be executed when the displayed price on GTS touches the order price. The executed price will be the order price or in the case of a fast market the order will be executed at the next displayed price and then the stop-loss order remains in effect until the market trade position is liquidated or canceled by the client.

All stop-loss orders will stay open until the debt market position is either settled or canceled by the client. While a stop-loss order on a sell market position is an order to buy that market position.
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