Types of order

Types of order

Types of order



The term "account" or request to open or close a position. In the FOREX market there are different types of account so that the trader can trade.

The following types of commands are:

Market Order (market order)

A market order is the order to buy or sell at the current market price. For example, if the current exchange rate for a currency pair EUR / USD $ 1.5000 us, if you want to buy at this price, you click the option to purchase (buy) and its platform immediately execute the purchase order at exactly that price. Simply, you see a price that suits you click buy and your position is open. Everything is valid and in case of sale or sold.


Types of order


limited account (limit order)

limited account is an account in a way to buy or sell a currency pair at a certain price. Order essentially contains two variables, price and duration. For example, EUR / USD is being held at a price of 1.4950 and want to buy if the price will come in the 1.5000. In this case, you can set up a limited account 1.5000 (then you can walk away from your computer and deal with other things). If the price reaches 1.5000, the platform will automatically execute an order to buy the right to that price. Determine the price you want to buy or sell a specific currency pair and specify how long you want the account worth (time). If prices do not produce a certain level, or spend time default will order.

The loss of the restraining order (stop loss order)

Stop-loss order is a limited account to the open position in order to prevent further loss if the price goes against you. Stop-loss order is worth until the position not to liquidate or cancel a stop loss order. For example, buying EUR / USD at 1.5200. To limit your maximum loss, place a stop-loss order at 1.5160. This means that if the market goes against you and EUR / USD falls 1.5160 instead of jumping as you thought, your platform will automatically execute a sell order at 1.5160 and close the position with loss of 40. Limitation of loss is very useful if you do not want to sit in front of computers all day. All you need to keep in mind is that before entering the trade has a clear picture of how much money you intend to lose on a particular trade.




non-standard accounts:

"Well until I" -GTC (good until canceled)

GTC order remains active in the market until you decide to stop. Your broker will not cancel your order. Your responsibility is only to remember that you have an account on the market.

"Excellent for the durability of the day '' GFD (Good for the day)

GFD account remains active on the market at the end of the trading day. Since the forex market is open 24 hours a day, usually it means 24 hours or midnight our time, but we recommend that you check the exact time your agent.

"Count it off the other '' OCO (order cancels other)

OCO order is a combination of two limit and / or stop loss orders. Two orders with price and duration are placed above and below the current price. When you run one of the orders, the other is zero.

The following are an example for the whole thing was clearer. EUR / USD at 1.5060. If you want to buy at 1.5120 over the resistance line (resistance) is expecting a gap (break out), or sell if the price falls below 1.5000 as a support line (support), depending on what will price-touch pass our established prices, a position opened one second account will be deleted.

Definitely:

Basic accounts (market, limit, stop loss and orderi) are usually all you ever need in FOREX trading. Do not complicate life for ourselves and make trading systems with a large number of different magazines unless you are not a professional in this aggressive market.

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