An order (English order - an order, an order) is an order to a dealer or broker to carry out an operation to buy and sell currency for a certain number of lots at a specified price and on a specific date.
Market Order - an order to buy-sell a currency pair at the current price. The execution of this order by the broker results in the immediate opening of a trading position. They buy currency at the ASK price, sell at the BID price. This is the fastest way to open a position, but it should be noted that with high volatility, Market orders are not the best alternative.
Pending Order - an order to buy-sell a currency pair in the future at a specified price. It is used to open a trading position, provided that the future prices are equal to the established level. The advantage of this type of order is that the browser will execute it regardless of the presence or absence of communication between the trading terminal and the server. In this case, the trader does not need to constantly monitor the market. The broker can delete the order only in case of insufficient margin requirement of the trade. In other cases, the order is valid until its execution, expiration, or cancellation by the trader himself.
There are 4 types of pending orders:
Limit Order: buy limit, sell limit.
Buy limit is an order to buy at a lower price than the price at the time of placing the order. With such an order, the trader expects the price to decrease ĸ to a certain level, upon reaching which the price will start to grow.
Sell limit is an order to sell at a higher price than the price at the time of placing the order. With this order, the trader expects the price to rise ĸ to a certain level, upon reaching which the price will begin to decline.
Stop Orders: buy stop, sell stop.
Buy stop is an order to buy at a higher price than the price at the time of placing the order. With such an order, the trader expects the price to rise to a certain level, upon reaching which the price will continue to grow.
Sell stop is an order to sell at a lower price than the price at the time of placing the order. With this order, the trader expects the price to decrease ĸ to a certain level, upon reaching which the price will continue to decline.
You can attach take-profit and stop-loss orders to market and pending orders, as well as to an already opened position.
Stop-loss (zarg. "Moose") is designed to limit additional losses if the price goes against the trader. Successful traders determine in advance an acceptable level of risk and always use this type of order. Stop loss can be set manually, and also in the automatic mode, when the order will move following the price. In trading, this instrument is called a trailing stop. This method is especially useful for unidirectional movement of the fish. Trailing stop allows you to set the distance in points from the current price. When the price moves in the right direction for the trader and his profit increases, the stop loss is automatically pulled up. If the profitability of the position falls, the stop loss is fixed. Important: the trailing stop works only when the trading terminal is open.
Take-profit is a predetermined price level, upon reaching which the position will be closed in profit.
It should also be noted that in addition to the types of orders discussed above, there are many others. This is often associated with different trading terminals offered by the broker.