In order to start trading Forex, you have to register a live trading account with Tradeview Forex. After allocating your funds into a trading account after which you can begin trading forex online. You can execute trades on several of the trading platforms we have available for Forex Trading such as Metatrader 4, Metatrader 5, cTrader, and Currenex. But before you begin your trading journey it’s important to know some of the basic order types that are used in forex trading.
Instant Order/Market Order
Instant order is the simplest type of order in Forex. It is an order to buy or sell a currency pair at the current market price. A trade position is opened automatically after this order is executed.
Pending Order / Limit Order
- Buy limit – A buy limit order is executed automatically once the “Ask” price is equivalent or lower to the value you are willing to buy the stock at.
- Buy Stop – A buy stop order is executed automatically once the “Ask” price is equivalent or higher to the pre-defined bid price. If a Price Gap happens, the first incoming price will be executed as started/gap.
- Sell limit – A limit sell order is executed automatically once the “Bid” price is equivalent or higher to the predefined value.
- Sell Stop – A sell order is executed automatically once the “Bid” price is equivalent or lower to the pre-defined value. If a Price Gap happens, the first incoming price will be executed as started/gap.
- Stop Loss Order – A stop-loss order is an order that is set on an open position to prevent losses if the price goes against the prediction. Once the price reaches this level, the position will be automatically closed instantly. Stop-loss order will remain in effect until the price reaches the order that is set or the order is canceled. If a Price Gap happens, the first incoming price will be executed as a stop-loss/gap.
- Trailing Stop – A Trailing stop is another order that intends to protect profits automatically and is set on an open position. It is entered with a stop parameter that creates a moving or trailing activation price. This parameter is entered as an actual specific amount of rising (or fall) in the security price. In other words, a stop-loss order of example 50 pips from the real price will be triggered and follows the price as it is profiting for a parameter of 50 pips set. However, the stop-loss order will be unchanged if the profitability of the position falls and thus, it will reach the stop-loss order and close the position to secure current profit.
Take-Profit Order – Take-profit works inversely with the stop-loss order as it is an order that automatically closes position once it reaches a certain level of profit. Take-profit order will remain in effect until the price reaches the order that is set or the order is canceled. It can be set to ‘open position’ and ‘pending order’.
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