6 types of orders

Updated: Jun 9

To trade in the forex market you must conclude currency buy and sell transactions. Below I present to you the types of orders and their operation.

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On the Forex market, there are market and pending orders. Market orders include orders to buy and sell currency. This is the simplest order type, you click the button and open market position.

You can add Stop Loss and Take Profit orders after placing an order using the edit function.

The second type is pending orders:

• Buy Stop

• Sell Stop

• Buy Limit

• Sell Limit

As the name suggests, you can set this order at a given level and "wait" for activation by price

We include pending orders:

Buy limit, pending order, which you set under the current price

Sell limit, a pending order that you set above the current price

You can apply these orders when you apply strategies based on price adjustments

Tip: Limit orders are less sensitive to price slippage

Buy stop, pending order, which you set above the current price

Sell stop, pending order, which you set below the current price

You can apply stop orders when your goal is to use trend traffic after breaking a given price level, e.g. after consolidation or an important support and resistance point.

Tip: the risk of price slippage is greater than for limit orders, due to the impetus of breaking.

Remember that pending orders are also Take Profit and Stop Loss

Take profit is an order that you use to close transactions with a profit.

Stop-loss is a reverse order to Take Profit, its task is to limit losses on the account when the market changes direction.

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Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Profit-sharing accounts are subject to a monthly performance fee per selected trading system.

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