Order Type

Order "refers to how you will enter or exit a transaction.

Below, we will discuss different order types. Once you place an order successfully, it means that you have enteredforeign exchangeMarket.

There are some common order types that almost all foreign exchange brokers offer, and of course, there are also some order types that sound strange.

Order type

Market order

Market order(Market Order)It is an order to immediately purchase or sell a certain quantity of contracts at the best or market price at that time in the market.

For example, the euro/The current buying price in US dollars is1.2140The current selling price is1.2142. If you want to buy euros at market price/In US dollars, the market will sell you at a price of1.2142. You will tap the mouse and click the buy button on your trading platform, and the system will immediately execute the buy order at this price.

limit order

limit order (Limit Entry Order)That is, set a buy order at a point below the market price, or set a sell order at a point above the market price. When the exchange rate reaches the set price target, the order will be automatically executed, otherwise it will not be executed.

For example, the euro/The current exchange rate of the US dollar is1.2050. You plan to reach the exchange rate1.2070When short selling, you have two options: either sit in front of the computer and wait for the exchange rate to rise1.2070Short the market price again, or1.2070Set a price limit order, then stay away from your computer and wait for the system to automatically execute the order.

When you believe that the price changes direction after reaching the price you set, you can use limit price orders.

Self set stop loss order

Self set stop loss order(Stop Entry Order)That is, you set a buy order at a point above the market price, or a sell order at a point below the market price.

This strategy is used when there is a breakthrough in the market. For example, if the trader believes that the exchange rate reaches a certain level, it will confirm the establishment of the current trend and continue this operating trend. In this case, this strategy can be adopted.

For example, pounds/The current price in US dollars is1.5050And it is in an upward trend. Do you believe that if the price is touching1.5060Will continue to rise. At this point, you also have two options: first, sit by the computer and wait until the exchange rate reaches1.5060Buy at the current market price, or choose a self set stop loss order. When you feel that the price will continue to move towards the current price, you can1.5060Set stop loss buying orders.

stop-loss order

Set stop loss orders(Stop-Loss Order)The purpose is that if the price fluctuates in the opposite direction to your judgment, you can avoid additional losses in a timely manner.

Please firmly remember this type of order. The stop loss order will remain valid until your position is closed or you cancel it.

For example, if you plan to1.2230Long EUR/USD. To limit your maximum loss, you1.2200Set stop loss orders. This means that if your direction judgment is incorrect, the euro/The US dollar has fallen below1.2200Your trading platform will automatically provide you with1.2200Execute the sales order and automatically lock it30The loss of points.

If you don't plan to sit in front of your computer all day worrying about losing all your funds, stop loss orders will be very useful. At the same time as you open the position, you can set a stop loss order.

Mobile stop loss

Mobile stop loss(Trailing Stop)The stop loss point set continuously changes with price fluctuations.

For example, if you plan to90.80Short the US dollar/Japanese yen and set20Stop loss of point movement. This means that initially, your stop loss position is at91.00If the price drops to90.50So your stop loss position becomes90.70。

As long as the price changes in the same direction as your judgment, or even if the direction is opposite to your judgment, it has not reached20Point, your order will always be valid. Once the price reaches the moving stop loss position, the stop loss order will be automatically triggered, and you will automatically close the position.

Strange Order

Valid order before cancellation(GTC)

GTCorder form(Good 'Till Cancelled)That is, the order will remain valid until you decide to cancel it. Your broker cannot cancel this order at any time.

Orders valid on the same day(GFD)

GFDOrder(Good for the Day)Effective until the end of this trading day. Because the foreign exchange market is24The 24-hour uninterrupted trading market usually means that after the New York market closes, the order will automatically be invalidated. However, we suggest that you confirm this situation with your broker.

Selective commission order(OCO)

Selective commission order(One-Cancels-the-Other)Bundle stop loss orders and profit orders together to ensure that when one of these orders is executed, the other will automatically be invalidated.

Let's pay in euros/Take the US dollar as an example. If Euro/The exchange rate in US dollars is1.2040If you want to break through the resistance level in the exchange rate1.2095Buying and wanting to break through the price1.1985Choose to short. When you chooseOCOIn the case of an order, if the exchange rate touches1.2095Will trigger a purchase order, then,1.1985The sales order will be automatically cancelled.

OTOOrder

OTOOrder(One-Triggers-the-Other)Only after the current order is triggered can it be triggeredOTOOrder. When you plan to set profit and stop loss targets in advance, even before you start trading, you can setOTOOrder.

For example, in US dollars/The current exchange rate of the Swiss franc is1.2000. Do you believe that once the exchange rate touches1.2100The trend will turn around, but at most it will only fall to1.1900. The problem is that you will be traveling for a week and you will not have access to the internet during this week.

In order to seize the wave of market trends that you have judged, you can1.2000Set a price limit for selling orders, while at the same time1.1900Set limit price purchase orders and place them on1.2100Set up stop loss orders. stayOTOIn the order, if1.2000If the selling order is triggered, both limit price buying orders and stop loss orders may be executed.

conclusion

The basic order type is usually required by the vast majority of traders.

Unless you're a seasoned trader(Don't worry, enough patience and time will make you an old hand)Otherwise, do not design your trading system to allow for the execution of a large number of unusual orders.

At the same time, please always verify specific order information with your broker to determine if there will be any extension fees if your position exceeds one day.

Keeping your order simple and easy to operate is the best strategy.

Unless you are already very familiar with the trading platform you are using and proficient, do not start real account trading. Incorrect trading is more common than you imagine.