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.
Let's get started❗ 🙂
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.
Thanks for reaching the end❗🙂 Put this knowledge into practice now or