The basic forex order types (market, limit entry, stop entry, stop loss, and trailing stop) are usually all that most traders ever need.
To open a position, the following pending orders may be used:
Here’s a cheat sheet (current price is the blue dot):
Unless you are a veteran trader (don’t worry, with practice and time you will be), don’t get fancy and design a system of trading requiring a large number of forex orders sandwiched in the market at all times.
This is always a tradeoff when using a limit order instead of a market order.
Stick with the basic stuff first.
Make sure you fully understand and are comfortable with your broker’s order entry system before executing a trade.
Also, always check with your broker for specific order information and to see if any rollover fees will be applied if a position is held longer than one day.
Keeping your ordering rules simple is the best strategy.
Please note that a market order is an instruction to execute your order at ANY price available in the market. A market order is NOT guaranteed a specific execution price and may execute at an undesirable price. If you would like greater control over the execution prices you receive, submit your order using a limit order, which is an instruction to execute your order at or better than the specified limit price.
DO NOT trade with real money until you have an extremely high comfort level with the trading platform you are using and its order entry system. Erroneous trades are more common than you think!
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