If there’s one thing that’s going to make sure that you stay successful in the world of forex trading, it’s going to be limit orders. You have to make sure that you are always thinking about the type of order that you want to place, because let’s face it — you’re not going to want to always handle everything manually. There are going to be times where you want to have some of this stuff taken care of for you.
Contrary to popular belief we are definitely not against automation when you know what’s going on. It’s when those fancy forex software programs begin to take over solid thinking and research that we get a little concerned. There’s so much to forex trading that it doesn’t make sense to only think in terms of one strategy over another. The problem with a lot of software solution is that they do not properly adapt with the market. While you run the software and think that it’s making all of the right decisions, you might be leaving money on the table — or entering risky territory without a way to cut your losses if the market flips on you.
Forex orders take care of that. There are quite a few orders that you need to learn about, and these orders are definitely going to keep you safe when it comes to getting things done within the world of forex trading.
The top order that you need to learn is the limit order. This is an order to buy or sell currency at a certain limit. When the market reaches the price that you set, your order is going to be carried out. When you want to sell, your order gets executed when the market reaches UP your limit order price.
There is also the general market order, which gets done a lot but it can be risky. This is because the order indicates when to buy or sell at the running market price. If the market is especially volatile, you might end up having to sacrifice pips when you least expect it. This is because the market can move faster than when the market order is actually given the price of the deal. You can enter or exit a trade with market orders, but it’s up to you to make sure that you are being as careful as possible.