Placing orders is the only way to trade in the Forex market. All actions regarding the trade of currencies are done through the use of different types of orders. Entering the market by opening positions, holding these positions and exiting the market by closing the positions are all done via the placement of orders. Another important type of order that safeguards investors from excessive losses is the stop loss order and investors should never trade without looking into this side of the transaction. In the long run trading by using the appropriate orders will allow a trader to be successful as losses are minimized and profits are maximized. Forex trading is never as simple as it appears and controlling the trade according to your trading plans can be done by the following orders being placed at the correct time.
Market orders
These are orders used by investors to trade in Forex and come into effect as soon as they are placed at the prevailing rate of exchange as quoted by the Forex broker. Buying and selling of currencies are executed immediately according to the prices displayed on the screen when placing the order. All that the investor has to do is to click on the price shown on the screen and accordingly your account will be adjusted.
Orders that limit your trade
These are collectively known as limit orders as they tend to put a limit on either buying or selling of currency. There are three main limit orders that give certain parameters to your trade. They are called Stop Orders, Entry Orders and Limit Orders. It is by utilizing these orders that you control the trading of currency as per your requirements. The specific periods these orders operate within are shown as GTC (Good till cancelled), GFD (Good for the day) or OCO (Order cancels other).