A trader has many tools at their disposal in order to trade the strategy of their choosing. These tools come in the way of different orders that allow the trader to enter and exit the market at their convenience. Today we will look at three of the prevailing order types used by
The market order is probably the most basic and often the first order type traders come across. Just as the name implies, market orders are traded at market! This means if you want to get into the market immediately, you can trade a market order and be entered at the prevailing price.
Typically scalpers and day traders rely on market orders to enter and exit the market quickly, in accordance to their strategy. To find out more about trading with market orders, read through the material at the
education/trading_tips/post_of_the_day/2014/01/03/How_to_Place_a_Market_Order.html?CMP=SFS-70160000000Nc3WAAS">Learn more about executing Market orders HERE!
The next order type is the entry order. These orders are unique in that they can be set away from present market prices. If price trades at the price selected, the entry will enter the market and open a new position. There are many benefits to trading with entries, including not having to be in front of your computer to execute your orders!
Normally entry orders can be used for breakouts or with other strategies that demand execution when price passes a certain point. To learn more on trading entry orders click the link to the
education/trading_tips/daily_trading_lesson/2013/12/21/3_Benefits_of_Using_Entry_Orders.html?CMP=SFS-70160000000Nc3WAAS">Learn about trading and executing Entry orders HERE!
Stops & Limits
Stops and limits are orders that everyone should familiarize themselves with. While stops and limits are technically entry orders, they deserve special attention due to their importance. In
Since Stops and Limits in
education/trading_tips/chart_of_the_day/2014/01/07/What_is_a_Stop_Loss_Order.html?CMP=SFS-70160000000Nc3WAAS">Learn to set Stops and Limits with this video at the DailyFX University!
The only way you can get comfortable with using different types of orders is to practice trading with them. Once you have read about all of the orders available, trade them on a demo account. You can sign up for a FREE Forex Demo account with FXCM and try them out immediately!
Register HERE to start your