Forex Trading Orders

Now that you know the basic terms used in online forex trading system, you should also be well-versed with the different types of orders that you will do while making your transactions.

The rule in placing orders is to really understand all about the order that you are placing. Don’t try to be smart when the truth is you are just clueless about the order you are placing. Don’t worry, you will get to know the orders that are perfect for you once you go and open your account. The following are a few of the more popular orders done in online forex trading:

The first one is the one called market order. Here you will buy and sell currencies for the present market price. You will do this notwithstanding the price of the currency. This type of order is perfect when you have followed a certain currency closely. Once you want to enter a certain position, you can do your trading with one click of a button. This will have great advantages for you if you are opting to enter a position right away.

How do you do this? First you should indicate the specific currency pair as well as the amount of your deal. For instance, you could say EUR/USD pair with values of 1.2603/06 for 2 shares of $100 each. After that you can try to sell each EUR with a bid price of 1.2603 USD or you can opt to buy each EURO with an ask price of 1/2607. Once you are done with this, your dealer will confirm your transaction. With online Forex trading system, this will only cost you a few seconds.

There is also a type of order that is called GFD or Good For the Day. Your order will stay active until the daily online Forex trading closes at the end of the day. Another one is the GTC or the Good Till Canceled order. This is actually one of the basic orders in online forex trading. As explained by the phrase, this order stays active until you have decided to cancel it.

You can also choose to make an OCO or Order Cancel Other order. Generally, this is used once if you happen to put a couple of limit orders or a couple of stop orders. As soon as you execute one of the orders, the other becomes cancelled.

The last order is called the If Done order. Here, you will only get to execute or activate an order if the order preceding this is also activated. This is quite advantageous because you don’t have to mind doing orders and you can focus on working with other currencies. For instance, you decided to buy a specific currency but to make sure you will not lose a great amount of money, you also put a stop. So you place a couple of online forex trading orders – the first one to buy the currency and the other for the purpose of a stop. Your other order, which is for the stop, will be considered as an ‘if done’ order. Once the first order is filled, your stop will become the replacement.