Choosing the right type of trading order is a significant ingredient
in the process of decision making. There are four types of orders
below.To get more news about WikiFX, you can visit wikifx official website.
1. Market orders are orders that traders place at the instant price of
the market. The electronic trading system boosts the speed of trading
but increases the volatility of the price movement. The price of the
order may differ from the one of the last second. People are not likely
to secure the price by a market order. Traders who execute the market
order increase the position opened in the market instead of the exact
price of the currencies. So we can open a position with a long-term
trend.
2. Limit orders are designed to make sure that traders enter the
position with an acceptable and payable price. The buy limit order is
placed at the current market price and offers the highest price that
traders want, while the sell limit order is in the opposite situation.
The limit order allows traders to have a proper cost of trading while
the position is not guaranteed. If traders have strict requirements on
cost, the limit order is a choice.
3. Stop orders are used to
minimize the loss of an existing position and protect the profits of
traders. The order will be placed automatically at a price as programmed
before. We can set the orders before bedtime. But this means that the
trader gives up the potential returns. It is not perfect but effective
to deal with the position we are not available to deal with.
4. Market-if-touched is a combination of limit order and market order.
An MIT order will be placed at the instant market price. When the limit
price line is hit, the position is opened at market price.
These four orders should be applied in your trading plans. Familiarizing suitable methods in the Forex market is helpful.
