There are 3 basic order types to trade currencies. They are called Market Order, Stop and Limit Pending Orders.
Market Order is an order to go Long (Buy) or short (Sell) at the current market price. You can't edit these rates.
Example :
Your trading software shows a quote for GBP/USD is at 1.9996 (bid)/2.0000 (ask). This means you can order a buy position at 2.0000 or you can order a sell position at 1.9996 at the moment.
But if you are willing to place an order at different price, you need to use Stop or Limit Pending Orders.
Stop Pending Order :
There are 2 benefits of using Stop Pending Orders :
- Stop Buy Order is used when you want to Buy above the current market price.
Example :
Current price is at 1.2000, and you want to Buy only if the market hits 1.2050. You can set a Stop Buy at 1.2050
- Stop Sell Order is used when you want to Sell below the current market price
Example :
Current price is at 1.2000, and you want to Sell only if the market hits 1.1950. You can set a Stop Sell at 1.1950
There are 2 benefits of using Limit Pending Orders :
- Limit Buy Order is used when you want to Buy below the current market price.
Example :
Current price is at 1.2000, and you want to Buy only if the market hits 1.1950. You can set a Limit Buy at 1.1950
- Limit Sell Order is used when you want to Sell above the current market price
Example :
Current price is at 1.2000, and you want to Sell only if the market hits 1.2050. You can set a Limit Sell at 1.2050
