Practical Definitions
One of the best significant tools, with the diagrams, is a trading platform where a trader or a merchant will be using it at what time the trading will be on the Forex market. A trading platform is an interchange account by means of such meanings because here you can buy and sell a currency according to the procedures.
Trading Platform
Entry Stop
Only an entry stop is applied just the once the exchange ratio break through a precise price and then the trader or the consumer using a stop entry order. He is sure of that once the market’s wave breaks through a precise price, the ratio will continue in that specific trend besides the enactment of a stop entry order may implicate a substandard unit of slippage, typically two pips otherwise less.
Entry Limit
An entry limit is always applied just the once the exchange ratio reaches but not breaks a precise price and then the trader or the consumer using a limit entry order. He is sure of that once the market’s reaches at a precise price, the ratio will hit in the reverse trend of its preceding wave.
Types of Orders
The term <order> mentions only how you will enter otherwise exit a trade. Here the different types of orders are discussed that you can be used in the Foreign Exchange Market. But before, you have to sure that which types of orders your broker is accepted because different types of orders accept by different brokers.
Order types:
Market Order
A market order where an order or you can buy otherwise sell a currency set at the best available price.
For example, at this time the bid price for EUR/USD is at 1.3242 and besides the ask price is at 1.3244. If you want to place a buy order for EUR/USD at market, at that moment it would be sold to you as the ask price of 1.3244 otherwise if you want to place a sell order for EUR/USD at market, at that moment it would be bought from you as the bid price of 1.3242. Whatever you click buy or sell, the order will be executed at the exact price.
Limit Entry Order
A limit entry where an order or else you can place to either buy below the market otherwise sell above the market while it reaches a certain price target.
For example, at this time EUR/USD is trading at 1.3040. You want to place an order for going short if the price reaches 1.3060. You can wait for it to hit 1.3060 and so you would click a sell market order otherwise you can fixed a sell limit order at that price. If the market price crosses up to 1.3060, your setting execution order will automatically perform a sell order at the best available price. But remember one thing, you have to use this type of entry order once you will be sure fully that the price will reverse upon touching the price you stated!
Stop-Entry Order
A stop-entry order where an order or else you can place buy above the market otherwise place sell below the market at a certain price.
For example, at this time EUR/USD is trading at 1.3050 and it is going to up. If you dam sure on this trading that the price will continue in this trend and it will hit 1.3060, you can step to place this type of order. You can go this way with strong believe: wait patiently and buy at market once it hits 1.3060 otherwise set a stop-entry order at 1.3060. Remember one thing; you will use stop-entry orders if you feel hardly that the price will move in one trend.
Stop-Loss Order
A stop-loss order is such type of order that is connected to a trade and it is used for the intention of avoiding other losses once the price goes in contradiction of our prediction. A stop-loss order will not be affected until the price touches at this setting order price. So, remember about this type of order.
For example, you set a buy EUR/USD at 1.3060 and for avoiding additional losses you also set a stop-loss order at 1.3040. This means that if the market price drops instead of moving up and touches at 1.3040; your setting execution order would automatically work as a sell order and close out this position with a 20-pip loss.
This type of order is very useful if you don’t want to sit all day in front of your trading. It is better to use stop-loss order than worried of thinking that you will loss all your money. So, you can merely use a stop-loss order on your any open position.
Trailing Stop
It is one kind of stop-loss order that attached to a trade and it moves as price oscillates.
For example, you have decided to use a short EUR/USD at 1.3050 using a trailing stop of 20 pips. This means that your stop-loss is at 1.3070. Once the price will go down and touch at 1.3020, the trailing stop would move down to 1.3040. If price touches this trailing stop, a stop-loss order will be worked then and the trade will be closed. This trade does not move in contradiction of your setting executed order by 20 pips.
Good ‘Till Cancelled (GTC)
Up until a person take decision to cancel it, a GTC order can keep active in the market. Then, our broker will not cancel this order at any time but have to remember one thing that it is our responsibility to keep the order scheduled.
Good for the Day (GFD)
Up until the end of the trading day, a GFD order can keep active in the market. As the foreign exchange market is a 24-hour market, this order can keep 5:00 pm EST that’s the U.S. markets close. So far, have to confirm schedule, we have to double check with our broker.
One-Cancels-the-Other (OCO)
This type of order is a mixture order: two entry order and/or else stop-loss orders. Two orders are kept using price as well as time variables and after that it has to place above and below current price. If among them one of the orders is implemented (either two entry or stop loss), the other remaining order is canceled (either two entry or stop loss).
For example, presumed that the EUR/USD market price is at 1.3060. You want to place a buy order at that price. Besides, you want to set two entry orders and /or stop-loss order; you could place an OCO order. If your OCO order at 1.3090 over the resistance level until a breakout or else start a selling position once the price falls back below 1.3030. This market position understands that if the market is reached at 1.3090, the executed order will be activated and the other selling positing which is at 1.3030, will be automatically canceled.
One-triggers-the-Other (OTO)
An OTO order is simply puts once the main order is activated. We can set this OTO order at what time we want to set profit and stop loss levels. But the problem is that it is a time consuming order because it will be gone for an entire week.
Noted: Before executing a trade, you have to make sure of that you understand fully and you are so comfortable with your broker’s order entry system. Please do not trade with your real money until you can understand how to keep control your trading and avoid losses in the market. Better than, you can more and more practice in your demo trading before starting with the real money.
