A few concepts in Forex trading industry need to well-understood by all traders who want to be professional someday. Not only for the journey towards becoming an expert, but also to conduct trades with more control. The time to learn about them is before a single trade is placed.

What is an Order?

An order can be defined as an offer sent by a trading platform to close or open a trade if the specified guidelines are satisfied by traders in Hong Kong. At its core, it instructs you on how to enter or leave a trade.

Let’s dive in.

Order Types

Investors will encounter several variations of systems, and some of them may sound a little odd.

They can fall into either of these categories

• Market Orders

This type of execution is deployed to buy or vend at the most favorable price. For instance, suppose the bid rate for a pair is 1.2140, and the asking rate is 1.2142 at a given time. If any investor wants to purchase the base of that pair, then he has to pay the asking rate for it.

Just by clicking on the buy button on a trading-platform, anyone can buy the base currency right away. Still, because of the high volatility in the Forex market, the selected amount often deviates from the executed price by the platform.

• Limit Order

There are two definitive market conditions in which traders are more likely to place a limit. One is buy-below the market, and the other is sell-above the market.

A trader places a “Buy-limit” to purchase a currency at or below a specified amount.

You can place a “Sell-limit” to sell at or higher than a particular price. When you trade bonds, this type of order is critical to your success as it helps you to shape your trade size and creates a perfect environment in which to ease the process of trading.

After the market reaches a “limit-price,” an order gets triggered. It also gets executed at the specified “limit-price” or maybe at a higher point.

When the amount becomes the most favorable, a necessary condition for placing a limit emerges.

• Stop Loss

Other names for it are stop-loss or limit-loss. Every investor needs to set one before entering a deal. That way, you can stop a trade from going further when the loss amount reaches a predetermined point. Investors set it to ensure their business is active only when it is over the limit level.

Thereby, limit-loss orders are tremendously useful. Speculators who don’t want to be in front of his computer’s screen should set a safe restrain-loss point. It will be in effect until a position gets liquefied or the investor cancels the loss-order.

• Trailing Stop

A trailing-break is an automotive stop-loss that can change its value when a trade reaches its highest determined profit level. So, a trailing stop is just a special form of stop loss which can move with the positive or negative price changes.

Let’s get clear with an example. Suppose someone has decided to short a pair at 90.80 and set a trailing it of around 20 pips. It suggests that the original it is positioned at 91.00. If it plummets and hits 90.60, the trailing stop will be more likely to reset at 90.80. It will get constant at that point and don’t move any further until the trend reverses back and provides a broader scope.

• Stop Loss Entry

Traders set a stop price, and the order doesn’t get executed until it touches that predetermined price. Such am order can only be placed when someone wants to purchase after it come closer to the stop-price.

Such an entry is placed to purchase over the trend or to sell below the trend.

Orders are a crucial part of Forex trading. Without knowing about them from the beginning, no one can use them properly.