Types of orders in Forex

What is Market order?

Buy and sell orders at the current market price are called  market orders.

Types of market orders

• Buy

The buying order at the current market price is known as a "buy order." Other terms used in the Forex market are "buy" and "long". For example, let's assume that a user intends to trade the gold symbol for $1680. If the user's goal is to profit from the price increase, he will buy. If the user is familiar with spread, he will realize that the brokers' price for buying(buy) is higher than the current rate, which is known as "ASK". This price difference, which is part of the cost of operating in the market, is called "spread."

• sell

The selling order at the current market price is known as a "sell order." Other terms used in the forex market are "sell" and "short". For example, suppose a user intends to trade the gold symbol for $1,680. If the user's goal is to profit from the price decline, he will sell. And if the user is familiar with spread, he will see that brokers use the current price for selling(sell), which is known as "BID". This price difference is called "spread" which is the cost of operating in the market.

What is Pending order?

Using  pending orders depends on one's strategy and trading plan. Pending orders are split into two general categories: Limit and Stop, which each includes sell and buy.

Types of Pending order

Limit order: buy and sell orders are made with the aim and expectation of a price return from a specific price range using a limit order.

• Sell Limit

A sell order at a price above the current rate to profit from the price reversal downwards is called a "sell limit".
For example, the price of gold is $1650. According to the trader's analysis, after rising to the $1675 to $1680 range, it can reverse downward again. Therefore, the trader can benefit from selling in the specified range. In this example, the trader selects a conditional order of the Sell Limit type in the specified range at the assumed price of $1679.

• Buy Limit

A buy order at a price below the current rate to profit from the upward price reversal is called a "buy limit".
For example, the price of gold is $1,650. According to the trader's analysis, after falling to the $1,625 to $1,620 price range, it can return from this range and rise again. Therefore, the trader can profit from buying in the specified range. In this example, the user selects a conditional order of the buy limit type in the specified range at the assumed price of $1623.

Stop order: buy and sell orders are placed with a stop order in expectation of the market trend continuation, after crossing a price range or a specified price. 

• Sell stop

A sell order is done by using a sell stop at a price below the current market rate in hopes of profiting from the trend continuation, i.e. a further price decline.
For example, the price of gold is $1650, and according to the trader's analysis, this price will continue to fall from the $1642 to $1639 range and will continue to fall.In this example, the trader can profit by selling in a lower range at the assumed price of $1638. Therefore, the trader has used a conditional sell stop order.

• Buy stop

A buy order is placed at a higher price than the current market price by using a buy stop, hoping to profit from the trend continuation of a further price increase.
For example, the price of gold is $1,650. According to the trader's analysis, if the price rises from the $1,658 to $1,661 range, it can go even higher. Therefore, the trader can profit by buying above the range at the assumed price of $1,662. In this example, the user has used a conditional buy stop order.