Know it Order Types on FX

Term of Order refers to how a trader can enter or exit a speculative position in the forex market. There are various ways of placing orders, and understanding pros and cons of various order types is keys becoming a savvy trader

To help make matters simple, let’s divide orders into 2 categories:

Order used to ENTER positions
Order used to EXIT positions

SUMMARY KEY CONCEPTS

Order used to enter positions:
Knowing the Market Order

• Advantage: Ensures trader that they will be in the positions
• Disadvantage: Far great likelihood that trader is not getting the best price for trade or is assuming unnecessary risk

Order used to exit positions:
Following orders that can be used to exit positions: Limit Order (Take profit Order)

• Advantage: Helps trader maintain discipline and effective way to lock in profits
• Disadvantage: May lead to premature profit taking, as traders may end up getting out of positions too soon with too little profit