“Orders” indicate how you enter and exit a trade. There are different types of orders that you can place into the foreign exchange market.   It is very important to you to be aware of which types of orders are acceptable to your brokers, as different types of brokers accept different orders. There are certain basic types of orders that are provided by all brokers and there are some weird types of brokers too.

Market Order

It is an order for buying or selling at the best available price. For instance, the current bid price of EUR/USD is 1.2140 and the ask price is 1.2141. If you are willing to purchase EUR/USD at the market price then you will get it at the ask price. This buying process involves just one click and your order will be done.

Limit Entry Order

This type of order is placed to either buy below the actual market or sell above the actual market at a particular price. For instance, if the EUR/USD is currently being traded at 1.2050. You are willing to go short in the event when the price reaches 1.2070. You can do two things at this time i.e., you can wait till the price hits 1.2070 or you can set a selling limit order at 1.2070. If the price goes higher than 1.2070 then your trading platform will be excited automatically at the best available price. This type of order is used when traders believe that price will reverse upon reaching the price that you specified.

Stop-Entry Orders

This type of order is connected to a trade that is for the purpose of avoiding additional losses in the case when the price moves against you. You have to cancel the order if the position is not liquidated.

Trailing Stop Order

It is a type of stop-loss connected to a trade that acts in accordance with the fluctuations that occur in price.

Good until Cancelled Order

This type of order remains in action in the trading market until you wish to cancel it. This order cannot be cancelled by your broker any time.

Therefore it is your responsibility to keep in mind that you have an order that needs to be attended.

Good for the Day Order

This type of order remains active in the trading market until the trading day’s ends. Since the forex market is a 24 hours market so the end of trading day usually means 5.00 pm EST as the U.S. market closes this time. However, it is recommended to you to double check with your broker.

One-Cancels-the-Other Order

This type of order is basically the blend of two entry and/or stop-loss orders. Two orders with the price and duration variables are put below and above the existing price. At the execution of one order, other order is cancelled too.

One-Triggers-the-Other Order

This order is the opposite of the One-Cancels-the-Other order. This order becomes active only when the parent order is triggered. This order is placed when you want to set profit taking target and levels of stop loss ahead of time. You can set this order even when you have not entered a trade.