Types of Orders

There are number of types of orders that can be used to enter and exit FOREX trades. The three basis orders are market orders, limit orders and stop orders. A market order is an order where the investors purchases or sells a currency pair at the current market rate. The benefit is that the order will be executed, but the trader runs the risk of receiving a price that is slightly different than the price seen on the screen. A limit order is an order where the investor specifically states the exchange rate where they will buy or sell a currency pair. A stop order is an order where the investor states a price above the current levels for purchases and below current levels for sales, and the order is executive when the price is reached.