| Order types |
The instruction to place an order can be done in a number of ways. Here are a list of typical order types.
Market order This is the simplest kind of order. When you place a market order you buy or sell the currency at the current market rate.
Limit order A limit order is an order to buy or sell at a certain price. This way you don’t have to sit around waiting for the rate to get to the point you want. Simply place your order and if the rate reaches your order requirements the order is executed automatically. You can also place a limit order on an open trade to close the position when rate reaches a certain point
Stop loss order A stop loss is a limit order linked to an open trade with the intention of closing the trade to avoid further losses.
GTC order Good till cancelled order. This order remains active until you cancel it. All basic orders are technically good till cancelled orders
GFD order Good for day. This order only remains active for the trading day you place it on.
OCO order Order cancels other. In this case you place two limit orders on either side of the current rate. Once the rate reaches one of the limit orders levels, that order is executed and the other order is cancelled.
Odds are you will only ever use the first three types of orders. |