TYPES OF ORDERS

[gabriel]

• Sellers are ASKing for a high price
• Buyers are BIDding at a lower price
• Trading is an auction
• Slippage occurs with most Market Orders
• The difference between the ASK and the BID price is the Spread

A Trader must understand what each order is and does and what part it plays in capturing profit. As a Trader on the FOREX you use three types of orders: a Market Order, a Limit Order, and a Stop Order. The two primary orders you should use for entering and exiting the market are a Limit Order and a Stop Order. Once you have placed your order to enter the market, there are two procedures to that your need to understand. These are: One- Cancels-the-Other (OCO) and Cancel-and-Replace. Properly executing your orders and understanding these procedures play a very big part in your profitability. Remember: all good carpenters carry a toolbox. The sharper his tools and the more skilled he is at using them, the more effective he is. The sharper you are as a trader the more effective and profitable you will become.

The following explains in detail what each order does. You must clearly understand what each order does before you start to execute your orders.

Market Orders: A Market Order is an order that is given to a broker to buy or sell the currency at whatever the market is trading for at that moment. It can be an entry order into the market or an exit order to get out of the market. Traders use Market Orders when they are ready to make a commitment to enter or exit the market. You must be very careful when using Market Orders in fast moving markets. In fast rallies or down reactions you can gain or lose many points to slippage before you receive your fill.

Trading is an auction where there are buyers (bidders) and sellers (offerers). The bid is the "buy" and the "ask", or offer is the sell. Slippage is defined as: when a trade is executed between a buyer and seller and the resulting buy or sell transaction is different than the price you saw just prior to order execution. With Market Orders you will lose on average one to six pips, if not more, due to slippage. Market Orders are rarely filled at the exact price you are expecting. We Recommend caution when entering or exiting with a Market Order.

Limit Orders: Limit Orders are orders given to a broker to buy or sell currency lots at a

certain price or better. The term Limit means exactly what it says. You will buy at that exact limit price or better a large majority of the time. Limit Orders are used to enter and exit the market. They are generally used to acquire a specific price, avoiding slippage and unwanted order fills (execution price) which can happen with Market Orders.

When you sell above the market, it is a Limit Order. When you buy below the market, it is a Limit Order. A limit order will be executed when the market trades through it. Seventy to ninety percent (70% to 90%) of the time, if the market is trading at your Limit Order it will be executed. The market must trade through you specified Limit Order number to guarantee a fill. The computer will notify you within seconds of your fill. You do not have to call your broker to see if you have been filled.

Stop Orders: Stop Orders are orders placed to enter or exit the market at a desired specific price. When you buy above the market, it is a Stop Order. When you sell below the market,

it is a Stop Order. Stop Orders turn into Market Orders when the market trades at that price. Stop Orders as well as Market Orders are subject to slippage, while Limit Orders are not.

The majority of Stop Orders are used as protective Stop Loss Orders. It is the order you place with your entry order to insure an exit when the market goes against you. A good trader never trades without a protective Stop Loss Order.

They are orders executed to get you out of the market when your trade has gone against you. Protective Stops are discussed separately as one of the 10 Keys to Successful Trading.

One Cancels the Other (OCO): Whenever you enter the market, you must exit the market at some future time. An OCO order is a procedure and means one-cancels-theother. Once you have entered the market, you should place a protective Stop Loss Order and have in mind a projected profit target. That projected profit target can be your Limit Order. If you simultaneously place both Limit and Stop Loss Orders when you enter the market, you can OCO them and walk away from your computer. What does that mean? At some future point in time either your Stop Order or Limit Order will be executed, automatically canceling your opposing order. If the trader is so sure about the trade, he can execute an OCO order and walk away from the trade. The computer will than manage the trade.

Cancel/Replace Orders: A Cancel/Replace Order is a procedure and not an entry or exit order. By definition it is when the trader cancels an existing open order and replaces it replace it with a new order. A cancel/replace order is primarily a strategy of trading and is predominately used after one has taken a position in the market and wants to stay in the market locking in profit.

For example: you buy Swiss at 1.410. Your protective Stop Loss Order is 1.390. The market moves in you direction as projected. You now want to reduce your potential loss, so you cancel your Stop Order at 1.390 and replace it to 1.410 where you got in. You are now in a trade with no risk. As the market moves further north in your direction, you now want to lock in more profit. You cancel your 1.410 Stop Loss Order and replace it with a new 1.440 Stop Loss Order. You now have locked in 30 Pips in profit. You are in an all-win, no-risk trade. You keep canceling and replacing your Stop until you are finally stopped out.

[Estella]

Orders with esoteric soundings names like Fill or Kill, Iceberg and VWAP provide the active stock trader with an almost unlimited smorgasbord of choices. These different order types can be divided into three primary main categories: Market Orders, Limit Orders, and Stop Orders.

Forex Education

[katie27]

Believe it or not, there are over 40 unique order types available to the stock trader. Each type serves a unique purpose in presenting your order to the market and is used in specific circumstances. Orders with esoteric soundings names like Fill or Kill, Iceberg and VWAP provide the active stock trader with an almost unlimited smorgasbord of choices.

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[dustinedan2]

One of the most important things that a trader or investors needs to know when it comes to spread betting is the order. This is because this will ...

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Dustin Edan

cd duplication

[jamal]

The best forex broker in the world is Forex-metal. I started trade there one year ago and now making around 30% profit daily. So try Forex-metal and be rich.

[usernameudhaya]

Good sharing nice..

[hyiptrusted]

it is better to use sl for normal losss and if you are expert then use small tp with no sl.

[van damme]

A market order is a buy or sell order to be executed immediately at current market prices. As long as there are willing sellers and buyers, market orders are filled. Market orders are therefore used when certainty of execution is a priority over price of execution.

A market order is the simplest of the order types. This order type does not allow any control over the price received. The order is filled at the best price available at the relevant time. In fast-moving markets, the price paid or received may be quite different from the last price quoted before the order was entered.

A market order may be split across multiple participants on the other side of the transaction, resulting in different prices for some of the shares.

[fxapex]

very interesting....thanks for sharing guys

[mak123]

Thanks really nice to have this information...

[yuda_forex]

it is better to use sl for normal losss and if you are expert then use small tp with no sl.

I think that neither expert nor newbie must use sl..

its very important in forex trading.

[venturefx]

not sure that trading forex can be called an auction. Auction is the state of trading when demand is more than supply. But forex is quite liquid market, when your order will always find counterparty. Orders in my OctaFx terminal are executed almost instantly. I think the same situation is with other brokers.

[nurfakih]

Believe it or not, there are over 40 unique order types available to the stock trader. Each type serves a unique purpose in presenting your order to the market and is used in specific circumstances. Orders with esoteric soundings names like Fill or Kill, Iceberg and VWAP provide the active stock trader with an almost unlimited smorgasbord of choices.

trade binary options

Believe it or not, there are over 40 unique order types available to the stock trader. Each type serves a unique purpose in presenting your order to the market and is used in specific circumstances. Orders with esoteric soundings names like Fill or Kill, Iceberg and VWAP provide the active stock trader with an almost unlimited smorgasbord of choices.

trade binary options

Hmmmm..., 40 Types of order??

I'm not sure about those amount. But, I'm believe that there many ways and styles to make orders. For 40 types I not sure..

[Haydar Ali]

Thanks for your contribution. it is very important post for the all new Forex member, I think learning is the main power of success. Without learning, it is quite impossible to earn continuous profit by trading.

[nurfakih]

Thanks for your contribution. it is very important post for the all new Forex member, I think learning is the main power of success. Without learning, it is quite impossible to earn continuous profit by trading.

Learning and make many practices is the only one solution in forex trading.

[Robert Kristofer]

Hello everyone! I'm curious is it real to trade without stoploss?

[marine]

My broker provide 2 account types and their main differences are instant execution and market execution, anyone has experience, please tell me.

[tianxiawuzeii]

dgfderf

[binaryowner]

I prefer to trade with stop and limit orders its a kind of automated strategy but it doesn't require extra coding skills or metatrader knowledge, rather than understand how price actions works, market sentiments and crowd behavior. My broker Hotforex has quite efficient platform for pending orders, stop/limit size is quite tight and slippage is low so I can catch nice trends with them

[Tanzil Al Banna]

Sometimes I need to use pending order option, when I can’t do desktop trading. But recently I am using free mobile trading service of TradingBanks broker. Basically, I use price action trading strategy so, every candlestick formation is very important for me. That’s way, mobile trading service is much better option for me than using pending order.

[emmy_cantik]

Yeah using mobile trading really interesting, we can trade every where we want it. I'm also using android trading platform from liteforex broker. its fast and smooth.

 

[uncle gober]

using the mobile trading, in trading more flexible and can trade anytime we want, so you can use the time to better and more comfortable too in trading

[Gaban]

On 8/17/2016 at 0:05 PM, uncle gober said:

using the mobile trading, in trading more flexible and can trade anytime we want, so you can use the time to better and more comfortable too in trading

in doing forex trading business will feel comfortable if you already have the maximum science, because a consistent profit can be obtained in each month. by with it we can try to continue to strive to improve the ability to be consistent profit can be obtained

[yunus]

We already are acquainted with basics of forex market dealings, So, we know how to put a trade and execute our trade properly. However, there is an argument about this matter. But we can agree with that whenever we are going to do it, we need to do this through our broker. This is extremely important to space appropriate orders with our forex broker.

Because alternative order types control the efficacy of our trade. So, we need to be careful so we can usage this correctly or otherwise it can lead us to losses and what will be the feedback of wrong entry and exit points? Our trade gonna directly fallout. My broker ECNCAPITAL.COM offers the all kind of order types for their clients.

[Jacob Smith]

If you wanted to do forex marketing forex order is very much important that you have to know it. In forex order is basically a way to in or out process of trade. Now I will share my experience of different types of orders that you may place in the market of forex. At first you have to that which order will   except your broker. Not all types order except by every broker. There are some basic types of orders that every broker offers such as limit entry order, market order, stop-entry order, stop-loss order, trailing stop order etc.

Without these basic orders there are some weird kinds of orders are also offered. GTC (Good till cancelled), GFD (Good for the day), OCO (One cancels the other) etc. MXTrade is the best solution of variety of orders. You can blindly depend on this trade service