An Introduction to Forex Orders

An Introduction to Forex Orders

Learn How To Enter the FX Market
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You can use several different types of orders to make and control your trades in forex trading. Some orders control both how you enter and how you exit the market. Learning what they all mean can go a long way toward successful trading. 

Market Orders


Limit Orders


Stop Orders or Stop Loss Orders


Entry Orders

Entry orders are those to enter the market at a specified price. It's almost impossible to monitor the market every second, and this is why an entry order can be handy. If you feel the market may take a certain action such as break through a price that it's been touching but hasn't yet been able to break, you would want to use an entry limit order. When the price crosses your entry limit order, you're in the market.

But entry orders can be a double-edged sword. The advantage is that you can enter the market when it moves while you're away or not paying attention. The disadvantage is that the market can touch your entry order and take it negative before you have a chance to evaluate the move. This is where good risk management practices come into play.

Do Your Homework 

Understanding different types of forex orders and their uses is an essential basic skill. Take the time to study them and try them out using a demo account before you take the plunge.

Note: Always consult with a financial professional for the most up-to-date information and trends. This article is not investment advice and it is not intended as investment advice.