1. Market Order
An order to purchase or sell at the current market price is known as a market order. EUR/USD, for example, is currently trading at 1.3200. You would click purchase to buy at this exact price, and your trading platform would immediately execute a buy order at that exact price. If you've ever used Amazon.com's 1-Click ordering, you'll know what I'm talking about. If the current price appeals to you, simply click once and it's yours! The only difference is that instead of buying Britney Spears CDs, you are buying or selling one currency against another one.2. Limit Order
A limit order is an order to purchase or sell something at a specific price. Price and length are the only two variables in the order. The EUR/USD, for example, is presently trading at 1.2050. If the price reaches 1.2070, you should go long. You can either sit in front of your monitor and wait for it to hit 1.2070 before placing a buy market order, or you can place a buy limit order at 1.2070. (then you could walk away from your computer to attend your ballroom dancing class). Your trading platform will automatically execute a purchase order at 1.2070 if the price rises to that level. You choose the price at which you want to purchase or sell a particular currency.
3. Stop loss order
A stop-loss order is a limit order that is tied to an open trade to prevent further losses if the price moves against you. A stop-loss order is in effect until the position is liquidated or the stop-loss order is cancelled. You went long (bought) EUR/USD at 1.2230, for example. You place a stop-loss order at 1.2200 to limit your maximum loss. This means that if you were completely wrong and EUR/USD fell to 1.2200 instead of rising, your trading platform would automatically place a sell order at 1.2200 and close your position for a 30 pip loss (eww!). Stop-losses are particularly handy if you don't want to spend the entire day worrying about losing all of your scheduled.
4. GTC (Good Till Canceled )
Until you cancel a GTC order, it stays active in the market. Your broker will not be able to cancel the order at any point in the future. As a result, it is your responsibility to remember that the order is scheduled.
5. GFD (Good For the Day )
Until the end of the trading day, a GFD order is active in the market. Because foreign exchange is a 24-hour market, this usually means 5 p.m. EST, when the U.S. markets close, but double-check with your broker.
6. OCO (One cancels Other)
An OCO order combines two limit and/or stop-loss orders into one. Above and below the current price, two orders with price and duration variables are placed. The other order is canceled when one of the orders is completed. Example: The EUR/USD exchange rate is now 1.2040. If the price falls below 1.1985, you should either buy at 1.2095 above the resistance level in expectation of a breakout or sell. The agreement is that if 1.2095 is reached, you will place a purchase order.
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FOREX TUTORIALS