The market order is executed immediately when placed. The market participant executing a market order performs purchase and sale operations according to the instant price of the chosen financial tool.
Stop orders (Stop Loss/Take Profit)
Stop orders are used with the purpose to close open transactions when the price reaches a certain level. Used in open transactions stop orders are closely linked to the instant market price. SL and TP orders regardless of the operation volume can be used in all the open positions.
The price, specifying the level placed above the market entry price in sell operations and the level placed under the current price in purchase operations when reaching that level closes down automatically. When the price reaches the mentioned level the operation closes automatically and this prevents any losses.
Stop Loss order is designed to limit any losses and determine whether the market participant's balance can stand the loss level. Stop Loss order may be used as in sell so in buy operations.
A take profit order is a FOREX trading order that is executed when a price reaches a certain level. The T/P is usually entered as a specific number of pips or price level. When the price reaches that level the current position is closed at profit.
The main function of this type of trading order is to lock in a trader’s position in profits. If the price reaches the preset level at profit the order is executed and operation is closed.
Buy Stop is a buy pending order placed above the market price. Even if it’s not reasonable to buy, market participants can use a Buy stop each time when there is a possibility of a price increase.
If you place a sell order below the market price, that order is known as “Sell Stop”. Even if it’s not reasonable to sell, market participants can use a Sell stop each time when there is a possibility of a price fall.
Buy Limit/Sell Limit
A rational FOREX trader wants to buy at the lowest price in buy operations and sell at the highest price in sell operations. Limit orders help to open positions at a time when the price reaches an optimal level, determined by a market participant earlier.
Market participants who guess that a market price is likely to reach a level lower than a current price place a Buy limit order at a certain price level and at a time when the price reaches this level, an operation is carried automatically. Buy limits are used to buy operations only.
Market participants who guess that a market price is likely to reach a level higher than a current price place a Sell limit order at a certain price level and at a time when the price reaches this level, an operation is carried automatically. Sell limits are used in sell operations only.
We invite you to meet Mekness investment world. You can follow the steps below to be an online investor with us.
You can fill the free demo account form on the side to open an unreal account and try the market without any risk.
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After depositing the initial investment you can easily start to trade.