Lesson 9: The Different Types of Orders in Forex Trading

The different types of forex orders are not just "buy" or "sell". There are indeed several types of orders that you can use depending on your trading strategies or the needs of your organization. You will find in this lesson an exhaustive panorama of the different types of orders that can be used in the context of forex trading:

Market order

The market order, otherwise known as the "Market Order", consists of buying or selling a currency pair at the current price.

The TakeProfit

This order is used to plan an exit threshold in benefit of your position, it tells the platform that you will take profits on the level you want.

The "Stoploss"

This command is used to plan a threshold of loss in your position, it tells the platform that you want to automatically cut your position if it reaches the level you want. The use of "stoploss" and "takeprofit" is really essential to the proper functioning of a trading plan, this allows you to plan your potential losses as your potential earnings.

Conditional Orders

On your trading platform you can also schedule "conditional orders". 
These orders are therefore "triggered" and we distinguish 2 main types of conditional orders.

Limit Orders 

Limit Orders allow you to schedule a purchase below the current price or a sale above the current price.

Example: 
* The USD / CHF is currently trading at 0.9625, I would like to schedule a purchase below the current price on 0.9600, so I place a Buy Limit on 0.9600. 
* The USD / CHF is currently trading at 0.9625, I would like to schedule a sale above the current price on 0.9650, so I place a Sell Limit on 0.9650.

Stop Orders

Stop Orders allow you to schedule a purchase above the current price or a sale below the current price.

Example: 
* The USD / CHF currently oscillates on 0.9625, I would like to schedule a purchase above the current price on 0.9645, so I place a Buy Stop on 0.9645. 
* The USD / CHF currently oscillates on 0.9625, I want to schedule a sale below the current price on 0.9610, so I place a "Sell Stop" on the 0.9610