Forex Market Order Types

There are several types of orders you can use in your currency transactions. They are as follows:

1. Market Order

   This order is used when you want to buy or sell a currency pair at the prevalent market price. Since the forex market is extremely liquid, meaning that there are always buyers and sellers with whom you can trade, market orders are guaranteed when dealing with a trustworthy broker.

2. Entry Order

   This type of orders is filled when the market reaches a rate that is predetermined. Entry orders can be:

   • Limit Entry Orders - if the order is of a buy character, then the rate is set at a level below the current market rate. If the order is of a sell character, the rate is set at a level above the current market rate.
   • Stop Entry Order - this entry orders are placed in case the trader wants to either purchase a currency pair at a price above the current market rate or sell the currency pair at a price below the current market rate.
3. Limit Orders (also known as Take Profit Orders)

   If you select this order, then you will have to set the rate, which if reached will lead to the exiting of the forex market and pocketing the resulting profits. This means that through limit orders traders specify the amount of profit they wish to obtain. Limit orders can be applied in both long and short positions.

4. Stop-Loss Orders

   These orders should be used when you feel that you have to determine the level up to which you are willing and able to accept a loss. 

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