Placing forex order
As mentioned earlier, the forex orders have to be placed properly. An order once executed cannot be undone and huge losses may be incurred.
When you make a deal, the buy and sell values will be almost same except for a little difference due to spread. Your objective is to close the deal when you make a good profit. There are different types of orders that you can place according to your judgement of the market. We will discuss them now.
Types of Orders
Market Order: Market order is most commonly used order. Market orders are executed at the current value whether it be bid price or ask price. Market order can be a new order or closing of an existing order.
Stop Order: Stop orders are placed when by observing the market trend, you have an idea that a certain currency pair will not break a resistance level. In this case, you place a stop order somewhere around the resistance level and your order will get executed when the ask/bid price reaches that value. There can be either buy-stop order or sell-stop order. Stop orders are used widely to curtail loss and to protect profits.
Limit Order: Limit order is executed when the current price reaches the value that you have specified or better. A currency pair will be puchased when the current price reaches the price specified in the limit order or lower than that. A currency pair will be sold when the current price reaches the price specified in the limit order or greater than that.
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