Types of Orders

Almost similar to the notion of "order" in the culinary world, in Forex trading this word hints at what we want to do to our trading transactions. For example if we want to "order" open-position or close-position.

Therefore, it is important for us to know the types of orders received by our broker. Some orders have a simple term, while some others will sound like a food menu. Okay, let's go straight to the scene!



Waiter!

waiter

Types of Orders

Order Order Normal
Order Market
This is the simplest kind of order in trading, all we need to do is buy or sell at the best available price.

For example, here, the selling price for the current EUR / USD is 1.2315 and the buy price is 1.2317. If you want to buy EUR / USD in the market, then we will buy it at the price 1.2317. We will click buy order and our trading platform will automatically execute it at that price.

Limit-Entry Order
This is an order that we can use to buy below market price or sell above market price, at a certain price.

For example, EUR / USD is currently trading at 1.2320 prices. We want to trade short when the price reaches 1.2345. We can choose:
Sitting waiting in front of the computer until finally the pair touched the price 1.2345, then click sell order.
Or...
We can set the limit order at 1.2345, then we can go out with friends.
With Limit-Entry orders our trading platform will automatically execute sell orders at the best prices provided by the market.

Order Stop-Entry
This order is the opposite of Limit-Entry. He is useful to make a buy action above market price or sell below market price, at a certain price range.

For example, GBP / USD is currently trading at 1.4545 and is currently moving up. If we believe the price will continue its current movement and touch the number 1.4567, then we can set the Stop-Entry order on that number.

Order Stop-Loss
This order is a type of order linked to trading with the aim of preventing further losses, when prices move beyond expectations. Therefore, it is important for us to remember this order.

If the GBP / USD was moving up from the range of 1.4545 to 1.4558, ehh, it turns out in the middle of our long wait, the pair instead turned and descended to 1.4535. Fortunately ... we had time to install Stop-Loss so we "only" 10 pip loss.

Order Trailing-Stop
The Trailing-Stop order is a type of order placed on the trading when the price fluctuates.

Let's say we want to short for USD / JPY pair at 100.80, with Trailing Stop on pip 20. That means we have set Stop-Loss at 101.00. When the price moves down and touches 100.50, then our Trailing-Stop order will automatically fall to 100.70.

Only, with this order we will be stagnant at that price and (NOT MOVING). Trailing-Stop will not widen when the price moves against our will. In short, after stopping in the 100.70 range, the price will not move again if suddenly the price moves to 100.60.

With our Trailing-Stop trade order will remain open as long as the price does not move against the previous 20 pips we have set on the Trailing-Stop order. Once the price touches our Trailing Stop, then the Stop-Loss order will be triggered and our position will be closed.

Strange Orders
Well, now we arrive at the weird order of the magic bin. But do not worry, when click the order we will not shrink or enlarge like Alice in Wonderland. If anyway, it is definitely a percentage of our loss, and if there is an increase in the percentage of our profit. Are not we these are Al in Forexland. Hehe...

Order Good 'Till Cancelled (GTC)
This unique first order is active in the market in accordance with our wishes. If we cancel this order, then immediately he will get away from our computer screen. Our broker can not cancel this order at any time. Therefore, we must be careful and remember that we have scheduled this order in trading.

Order Good for the Day (GFD)
Unlike the previous order menu, GFD remains active until the end of our trading on that day. Because Forex is a 24-hour open market, this means our trading (especially Asian traders) follows the Sidney and Tokyo session markets. It starts at 4:00 and ends at 14:00. But for more details, it's good we ask our brokers.

Order One-Cancels-the-Other (OCO)
This is a mix of stop-loss orders and / or two entries. Two orders at one price and the varying duration are placed above and below the current currency pair price. When one of the orders is executed, the other order will be automatically canceled.

For example, the pair USD / JPY which is at the price of 96.65. We want to buy at 96.85 at the resistance level to anticipate break-out, or initiate to sell if price falls below 95.45. With this order we can do the two orders. So when the price reaches 96.85, our buy order will automatically be active. While a sell order at 95.45 will be spontaneously canceled.

Order One-Triggers-the-Other (OTO)
Unlike OCO orders, OTO orders will only react when the previous order is triggered. Generally this order is used when a trader is taking profit and doing stop-loss level first, even before the trader goes into the trading arena.

Dollar fight

For example, only today the pair EUR / USD is in the range of 1.2885. When looking at the chart we are sure, so touching 1.2915, the pair will experience a reversal and move down to the 1.2795 range. Unfortunately, we can not wait until the pair touches the number. There is a date to the interior of Papua, so we will not be able to see further developments in the market trend.

Well, so we do not miss the big catch during the date, we can set the sell limit at 1.2885 and at the same time, place buy order limit at 1.2795, and to keep stop-loss on 1.2915. OTO orders will only place buy limit and stop-loss orders if the order sell we do first triggered.

"So, the conclusion...???"

Dizzy read and understand the strange order types above? Do not worry. Generally, when trading we only require basic orders (such as market orders, entry limit, stop-entry, stop-loss, and trailing-stop).

Then for what we had read the order above ?!

Hey, calm down, man .... Try to think positively and look ahead. There's no way we'll survive and stay in the position of amateur trader for a lifetime, right? Surely we will slowly become a pro and veteran trader. At that time we will need the order above to be able to innovate at the time of trading.

But remember!
Do not mess around as long as we are still nervous and just joined in the world of Forex. We simply adapt to brokers, understand when to buy or sell, know when to limit entries and stop them, and limit our losses before trading execution.