First part: Necessity and familiarity with the types of orders in forex
. The importance of knowing the types of orders in the forex market
. Introducing the types of ordering in forex
Second part: main categories of orders
. Types of orders in forex:
Market Orders:
Spot order or market (Market Execution)
Pending Orders:
Limit Orders:
Purchase order at a certain and lower price (Buy Limit)
Sell order at a certain and higher price (Sell Limit)
Stop Orders:
Purchase order at a certain and higher price (Buy Stop)
sell order at a certain and lower price (Sell Stop)
Stop Loss Order:
Trailing Stop Loss Order
Take Profit Orders:
Trailing Stop order
Necessity and familiarity with the types of orders in forex
Familiarity with the types of orders in the forex market is essential; For this reason, every capitalist should think about it. Familiarity with the types of orders allows investors to conduct their transactions in the best possible way while controlling risks; Therefore, professional traders should have the ability to use them and at the same time manage different strategies to get more profit.
The importance of knowing the types of orders in the forex market
Knowing the types of these orders is vital and important, especially for people who intend to invest in the market for a long time. The most important reasons for emphasizing the recognition and awareness of the types of orders are:
Risk management
Knowing and awareness about the types of orders allows traders to determine their profit and loss limits and manage the transaction to gain more profit while determining the time of entering and exiting the market.
Accurate execution
Another advantage of knowing the types of orders is the accurate execution of transactions, especially for people who do not know much about how to register orders.
Using different strategies
Since traders use different types of strategies to register their transactions, it is necessary for them to know the types of orders; Because by using them they can optimize their transactions.
Reduce stress
Constantly and everywhere, increasing knowledge and awareness will reduce stress and cause you to manage it. When you, as a trader, have the necessary information about how to trade and use different types of orders, your stress will definitely decrease.
Use of automated tools
In most cases, traders use various tools such as trading robots in trading platforms.
Introducing the types of orders in forex
Investors can use different types of orders that suit market conditions to enter and exit trades. Some of the most important types of orders in the forex market are:
. Market order
. Pending order
. Trailing stop order
. Select order
Market Orders
This type of order allows traders to buy and sell their desired currency at the current market price. One of the main features of this type of order is its very high speed, which helps traders enter into transactions quickly.
Despite the fact that these types of orders are done quickly and easily; But they may be subject to slipping, so you should keep these possibilities in mind during trading and when using market orders.
Market Execution
This type of order, which is called a market order, allows traders to buy and sell at the current market price. In this way, when the order is issued by the trader, the order is quickly sent to the executor and the transaction starts based on the current market price.
In financial markets, there are different types of market orders, some of the most important of which are:
- Market purchase order
. Market sell order
- Immediate purchase order
- Immediate sell order, spot or market order
Pending Orders
This type of trading allows investors to execute a transaction at a specified time in the future. To carry out this type of transaction, the transaction is executed without the need for the presence of the trader at the time of execution of the transaction and at a predetermined price. There are different types of pending orders, which we will discuss each one below.
Limit Orders
This type of order allows the trader to close or exit the trade at a specified price. When a trader sets a limit order, he sets a specific price to enter and exit the trade. The trade will not be executed until the price reaches this level specified by the trader.
Purchase order at a certain and lower price (Buy Limit)
In this transaction, the trader allows the transaction to be completed at a certain price lower than the current market price. For this, he adjusts the transaction so that the transaction price is lower than the current market price. By sending this request, the order will not be executed until the price reaches the specified level.
For example, if the current price of a currency pair is 1.2000 and the trader intends to buy at a price lower than this amount, the transaction will be executed only when the currency pair reaches the set price of 1.1950 or lower.
Sell order at a certain and higher price (Sell Limit)
This type of order is also a type of limit order that allows traders to execute a transaction at a specified price, higher than the current market price. Simply put, by sending the trader’s request, the transaction will not be executed until the transaction price is higher than the current market price.
For example, if the current price of a currency pair is 1.3000 and the trader intends to sell at a higher price, the transaction will be executed only when the currency pair reaches 1.1350 or higher.
Stop Order
This type of order is more useful for managing risks and determining the entry and exit points of trades. In this type of order, the trader has the option to execute the trade at a certain time in the future, that is, when the prices reach the desired level. Stop orders are divided into two main categories, each of which has its own unique features.
Purchase order at a certain and higher price (BUY Stop Order)
In this order, the trader places a buy order when the price rises to a certain level. Simply put, the trader decides to buy just when the price reaches a higher level than the current price.
Sell order at a certain and lower price (Sell Stop Order)
In this order, the trader places a sell order when the price drops to a certain level. Simply put, the trader decides to sell just when the price reaches a lower limit than the current price.
Stop Loss Order
Stop loss orders are an important risk management tool in the forex market. When a trader opens a trade, he places a stop loss order with it. In this case, if the market price moves inversely and the transaction becomes unprofitable, the transaction will be automatically closed and the trader will suffer a small loss.
In this case, users can determine the extent of the loss that may threaten their property, and if it exceeds the amount, they can not enter into the transaction at all. This method has so far prevented large losses in trading and controlled risks to a great extent.
Trailing Stop Loss Order
This type of order is one of the special orders in the forex market, which allows the trader to automatically change the stop loss to a profitable trade with positive price progress. In other words, according to this order, when the trade moves to the positive side, the level of the loss limit is automatically adjusted so that the trader receives more profit while preventing large losses.
Take Profit Order
These types of orders are also the best tools for optimizing transactions in the forex market. When a trader opens a trade, he may place a take-profit limit order with it so that if the price moves to a profitable trade, the trade is automatically closed and the profit made up to that point is recorded.
In this case, users can determine the amount of profit they want to get in this transaction, and if it exceeds the amount, the transaction will be closed automatically.
Trailing Stop order
This type of order, which is a type of stop loss order, allows the trader to automatically change the stop loss level with positive progress towards a profitable trade. When the trade moves to a positive trade, the stop loss level will be set and executed automatically. This process continues until the trade moves towards the target price and then stops at the trailing stop level.
The last word
One of the most important and common tools in the forex trading market are various orders that help traders manage their activities in the market. By using these orders, users can better manage risks and prevent large losses or loss of capital. In addition, by increasing awareness about the types of orders, traders can more accurately estimate the time of entry and exit of trades and increase their productivity.
Also, by using these types of tools at the right times and by using the ability to automatically adjust or automatically make orders, reduce the percentage of losses and increase the amount of profit.