There are several types of forex orders.
An order is an offer sent using your broker’s trading platform to open or close a transaction if the instructions specified by you are satisfied.
Basically, the term “order” refers to how you will enter or exit a trade.
Here we discuss the different types of orders that can be placed in the forex market.
Be sure that you know which types of orders your broker accepts.
Different brokers accept different types of forex orders.
There are some basic order types that all brokers provide and some others that sound weird.
Orders fall into two buckets:
- Market order is an order instantly executed against a price that your broker has provided.
- Pending order is an order to be executed at a later time at the price you specify.
Here’s a quick “map” of the different types of orders within each bucket.
A market order is an order to buy or sell at the best available bid or ask price.
For example, the bid price for EUR/USD is currently at 1.2140 and the ask price is at 1.2142.
If you wanted to buy EUR/USD at the market, then it would be sold to you at the ask price of 1.2142.
You would click buy and your trading platform would instantly execute a buy order at that (hopefully) exact bid price.
Please keep in mind that depending on market conditions, there may be a difference between the price you selected and the final price executed (or “filled”) on your trading platform.
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