Placing orders appropriately in forex
market is really an important factor which you must know. Similar to
stock market, forex trading also involves various types of orders which
are implemented to control trade effectively.
It should be noted that, inappropriate
use of order can negatively affect entry & exit points while
trading. In addition, placing an order should be implemented as per your
entry & exit strategy in the FX market. The blog uncovers the types
of trading orders in forex market to assist you for accurate entry
& exit.
Market Order
Market order is the most regular type of
forex order. This order is implemented when executing an order during
the current price. If you’re buying currency, market order will perform
trading at the current ask price and during the selling of currency, the
market order will perform at the bid price. To implement the order in
an appropriate way, it’s helpful to Forex trading tips to get proper entry/ exit.
Entry Order
Entry order is executed once the currency pair outreaches a particular target price. Entry order acts as a best Forex signal provider at the time of buying a currency pair at a particular price & unable to reach the target price.
Stop Order
It’s an order that is used to limit the
losses, once your specified currency price reaches to profit level. Stop
order helps to enter in a new position as well as to exit
automatically.
If executing a stop order to enter into a position, it is termed as ‘Buy stop order’ & provides Forex signals for buying a currency pair as per the market price.
Similarly, implementing a stop order for
exiting a trade, it is termed as ‘Sell-stop order’ and provides signals
to sell out the currency pair as per the market price.
Limit Order:
A limit order is a kind of instruction
for buying & selling a currency at a specific price limit. A limit
order (buy) is a signal for buying the currency pair as per the market
price or when the market reaches your specified price.
A limit order (Sell) is a signal to sell
out the currency at the market price when the market reach your
specified price or get high.
When it comes to place the trade, you
must know where to take profits from. A limit order is a profitable
order which allows you to exit the market as per your objective. The
limit sell order is positioned above the current price whereas the
stop-loss order is positioned below the market price.
Source: {http://www.mmfsolutions.sg/blog/4-forex-signals-to-place-an-order-while-trading-in-forex-market/}
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