Types of Forex Orders - What are Different Types of Forex Orders?

Types of Forex Market Orders Forex Trading and Types of Pending Orders Forex Trading

Different types of forex orders which a trader can use to trade forex - The Different Types of Forex Orders are:

Types of Forex Market Orders

Forex Trading Market Order

Market Order is the most basic type of forex order, market order is used to buy or sell at the current ask or bid forex quote price. This refers to the quoted price which pops up on your trading platform.

Market Order type of forex order is used for buying or selling according to the present exchange rate quote - the execution of market order is instant. The minute you want to enter a forex trade position you can buy & sell at a click of a button key using a forex market order.

Types of Forex Pending Orders

Limit FX Trading Orders & Stop Forex Trading Orders

Pending Orders are forex orders which are used to open a new forex trade position after the market reaches a price specified by the trader.

Pending Orders are used to buy or sell when the price quote attains a certain price target.

When a specific forex trading price level is reached then a forex pending order is executed.

Forex Pending Orders are used to enter a forex trade at a specified price level. It is almost impossible to monitor the forex market every second & this is why a forex pending order can be used. If you feel the forex market may take a certain action, such as break through a specific forex trading price level which it has been touching but it has not been able to break this level, then as a trader you would want to use a Forex Pending Order. Once the forex trading price quote crosses your specified level, your pending order is executed.

There are 2 types of pending orders - limit order & stop order.

These pending orders are also known as entry orders.

Limit FX Order

An order to buy or sell at a particular limit.

An entry limit order can be used to buy below the current forex trading price quote or sell above the current forex trading price quote.

When buying, entry limit order is executed when the price falls to your limit forex trading price quote zone.

When selling, entry limit order is executed when the price rises to your limit forex trading price quote zone.

These Entry Limit Orders are placed by traders when they expect the forex trading price to bounce back after reaching the price quote level at which the entry limit order was placed.

• Buy Limit Order Specifies to buy at a level below the current forex market price

• Sell Limit Forex Trading Order Specifies to sell at a specified level above the current market price

How to Set Buy Limit Orders & Sell Limit Orders in MT4 - Forex Pending Orders in MT4

Entry Stop FX Trading Order

An entry stop order is an order to buy above the current forex trading price or to sell below the current forex trading price.

When buying, entry stop forex order is executed as the forex market goes upward & hits the buy stop price quote level.

When selling, entry stop forex order is executed as the market goes down and hits the sell stop forex trading price quote zone.

• Buy Stop Forex Trading Order Specifies to buy at a level above the current forex market price.

• Sell Stop FX Trading Order Specifies to sell at a level below the current forex market price.

How to Set Buy Stop Orders & Sell Stop Orders in MT4 - Forex Pending Orders in MT4