Types of Forex Orders

Let's remember that one of the advantages of the Forex market is that it avails traders to follow the "movement and momentum" of the market also when they are AWAY from the computer.

let's remember that the forex market is active 24 hours a day. ORDERS are a trading tool that avails us all to trade while not being there!

Among other things the forex orders will help you to: follow and implement a given trade strategy, limit risks in highly volatile markets, take advantage of short-term changes and currency fluctuations, follow a trading discipline, control and avoid losses, and, protect your profits.

The implementation of orders in currency trading is cardinal, since it will help us to control the impact of adverse movements, the main types of orders are:

a) Take Profit Order – this order permits us to LOCK GAINS when having an open position (i.e. a position that already exists)

b) Limit Orders – the limit orders, are in fact a kind of Take Profit orders, with the onlhy difference that while the first ones require a given open position, the limit orders permit you to open new positions or add to existing positions.

c) Stop Loss Orders – this order permits you to "stop losing money", plainly as it names suggests, they close out an open position that is losing money.

d) Trailing Stop-Loss Orders – a trailing stop loss order is a stop loss order defined at a specific number of pips from the entry rate.

e) One cancels the others (OCO order) – this is a stop loss order combined with a take profit order, the position will stay open till one of the orders levels is reached by the market, closing your position.

In a way, all these forex orders are a kind of "guard" that will allow your positions to spot avoiding you to lose unwanted sums of money.

These orders are also highly recommended for traders that tend to have a "gambling" tendency, i.e. are not able to stop a position when it starts losing, hoping the market will raise again, call it a Forex Baby Sitter if you wish!