ForexGen Order Types

The term "order" refers to how you will enter or exit a trade. Here we discuss the different types of orders that can be placed into the foreign exchangen market.

Basic Order Types

There are some basic order types that all brokers provide and some others that sound weird. The basic ones are:

Market order

A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price.

Limit order

A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070.

Stop-loss order

A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you.

A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order.