Tuesday, August 24, 2021 / 10:38 AM / George Rossi / Header Image Credit: Forex Scalper
Investing in forex is like investing in other areas of life. Regardless of the business or enterprise, each has a proper procedure. There are actions to take if you want to ascend quickly, exceed expectations, defeat competitors, and stay on the top. Investing is the same way. Investors can issue trade instructions in a variety of ways. Orders are the terms used to describe these directives. Let's take a closer look at this concept.
What is an Order?
An order is an instruction from an investor to execute a transaction after specific trading criteria are met. You can't avoid the concept of orders as a forex trader. Orders allow you to spend your time on other things rather than watching the market for long periods. You can use an order to determine when to enter or quit the market, and how much risk you are willing to take.
Types of Order
There are times when all you want to do is get into or get out of the market. You need a market order in both instances. Your broker (for example, InstaForex) will promptly execute a deal at the best available price when you place such an order. It is the most common and oldest sort of arrangement. There is no genuine analysis in a market order. Any entry or exit decision is made based on the current market price at the time.
This order instructs the investor to purchase a market price or a sale above the market price at a specific time. A limit order is the one that specifies a particular limit price for either sale or purchase. Unless you achieve the set target prices, the limit order will not be activated or executed. You won't have to spend as much time in front of the computer this way. You can now establish these pricing limits and get some sleep.
A stop-loss order is the one that lets you exit a deal. It is, in other words, the last command to be executed before a deal is closed. The main goal of a stop-loss order is to keep losses to a minimum. A stop-loss order can be placed when prices are expected to be high enough for the investor right before the market starts to fall. You can sell it at a discount on the market price. To guarantee that no more than a certain level of loss will occur.
What Is the Right Order?
The investor's market understanding determines the best order to apply. Every order has a purpose. Apart from that, some trading firms' platforms may not support all sorts of orders. All FXTM trading platforms and mt4 forex brokers support limit and stop-loss orders; however, knowledge and practice are essential. A thorough study and use of these commands will assist you in determining the application of the right orders at any time.
About the Author George Rossi
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial service professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.
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