Before you enter into the forex market you need to know how to place order with forex brokers. Most important thing you need to know before you place an order with a broker is “How to place them appropriately”/ how you intend to enter and exit the market; orders should be placed staying on that determining factor. Improper order placement can skew your entry and exit points.
Some of the orders you can choose are:
An order than an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price. It doesn’t contain restrictions in the buy and sell price or the timeframe in which the order can be executed. There is not a guarantee of market order going through even though market orders offer a greater likelihood of a trade being executed.
You may use the market order to enter a new position (buy/sell) or to exit an existing position (buy/sell). All orders are processed within present priority guidelines. Whenever a market order is placed, there is always the threat of market fluctuations occurring between the time the broker receives the order and the time the trade is executed. This is especially a concern for larger orders, which take longer to fill and, if large enough, can actually move the market on their own. Sometimes the trading of individual stocks may be halted or suspended.
Stop order is also referred as a stop loss; stopped market, on-stop buy or on-stop sell. This is one of the most useful orders. Unlike the limit and market orders; which are active as soon as they are entered- this order remains dormant until a certain price is passed, at which time is activated as a market order, so this order is different than other two.
A buy-stop order is an instruction to buy a currency pair at the market price once the market reaches your specified price a higher, which is higher than the current market price. A sell-stop order is an instruction to sell the currency pair at the market price once the market reaches your specified price or lower, which is lower than the current market price.
For instance USD/CHF is rallying toward a resistance level and based on your analysis you thing that if it breaks above that resistance level, it will continue to advance higher. To trade this opinion, you can place a stop-buy order a few pips above the resistance level so that you can trade the potential upside breakout. If the price after reaches or surpasses your sp