Types of orders on Forex.

Using a trader's trading terminal, you can place several types of trading orders, some of which are standalone orders, while others serve as supplements to existing ones.

To trade effectively, it's important to know all available options; this will significantly expand your trading capabilities.

Orders are primarily divided into urgent (instant execution) and pending orders, and we'll begin with these.

Orders with immediate execution.

A standard order to open a trade, which is executed as soon as the signal from your terminal reaches the forex brokerage company's . By submitting it, you simply open an order at the current market price.

Pending orders.

Unlike the first option, there is a choice here; pending orders are Stop and Limit:

• Buy Stop - buy an asset at a price higher than the current one. It is triggered as soon as the price rises to the set level.
• Sell Stop - open a sell order after the price drops to the required level.
• Buy Limit - buy if the price drops below the current one.
• Sell Limit - sell if the price rises to a certain level.

If everything is clear with Stop orders, the price is growing, there is an uptrend on the market, we place a Buy Stop, which opens after the price reaches the set level, in this case, regular trend trading is used. But with Limit, everything is a little more complicated, for example, you know that after today's rise in the euro, most likely there will be a pullback and the price will drop to a certain level, and then go up again. It turns out that you need to buy at the very bottom, which is exactly in this case when Buy Limit is used, the rate seems to be growing, and you place a purchase below the existing one.

Stop orders.

Essentially, they aren't separate orders, but rather serve as an addition to existing ones. This type of Forex order allows a trade to be automatically closed when certain conditions are met. There are three stop orders.

Take profit closes a position if a predetermined profit is reached.

Stop loss is triggered when a predetermined loss is reached.

A trading stop is a unique variation of stop loss; it can automatically move with the price, thereby locking in profits or minimizing losses.

Stop orders are placed when opening a new position, but can be placed later if desired, although this is highly undesirable.