Types of orders

> The order at the market (or at any price): The market order is a type of stock market order, purchase or sale, which does not specify a transaction price. However, unlike the stock market, the execution of your order is instantaneous. From your broker, the quotations will appear for each parity. So, just click buy or sell on the parity you want, at the time you wish, to be executed. This type of order is often a desire to enter or leave a trade quickly.

> The order at limit: The buyer or the seller specifies a limit of price which he is ready to buy or sell. Thus, unlike the market order, the price of the transaction is known in advance, but the buyer or the seller does not know the time at which his order will be executed. The order may in some cases never be executed if the limit is not reached. That is why it is important to clarify the validity of your order. It may be valid at the end of trading day (day), weeks, months, years or until cancellation. In the case of a day order, if the limit is not reached at the end of the trading day, so the order will be automatically canceled. The limit order may be used to enter the market but also to leave. You can set a goal of winning. Assuming you entered long on EUR / USD at 1.3850. You set a target of 100 pips. You just have to place a limit order at 1.3950 and if the price is reached, you will be automatically executed. This allows you not to pop your eyes on your computer. The limit order guarantees to be executed at the price you have requested or a lower price if the order book allows.

> The stop order:  It is a limit order to buy or sell that is linked to an open position. Its purpose is to limit your losses to a certain threshold if the market goes in the wrong side. This is called a stop-loss. If your limit is reached, your order is automatically executed. However, it may happen that the drop of the price is sudden and in this case you cannot be executed at your limit. Once the limit is reached, the order becomes actually an order to the market and will be executed faster. But don’t worry, this kind of things just happens when an important news is announced. It is therefore advisable to use it on each of your trades. When you enter long (or short), place your stop loss at a lower price (or higher) to your entry price. Thus, if the market goes in the wrong side, you know the potential amount of your losses. If the market goes in the right direction, you can also operate a move with your stop. As the price goes in the side you wanted, move up your stop loss. Consider an example. You are long on EUR / USD. Your entry price is 1.4030. Then put a stop loss to 1.4000 for example. Thus, in the worst case, you lose 30 pips on your trade. At the opposite, if the price goes up and reached 1.4070 for example, you can then move your stop loss to your entry price. So, if the price drops, you are losing any money. You'll understand it; the main advantage of this type of order is that you do not need to be stuck on your computer! It also allows you to apply the method of money management. A stop-loss order can be combined with a limit order. A stop order can also be used to get in position to take advantage of a sudden rise due to news. Once you stop reached, your order becomes a market order and so you will not be necessarily executed at the price you asked if the increase is too high.

> The OCO order, one cancels the other: The OCO order is a type of stock market order. It is the combination of two orders at limit or a limit order with a stop loss. Your two orders are placed at different prices. In the case of two limit orders, one of them will be placed above the current and the other below. Thus, if one is executed, the other is automatically canceled. This allows you to play up or down when the market is undecided. For example, the EUR / USD can move within a horizontal channel in which the landmarks are 1.4080 and 1.4020. If one of the two landmarks is broken, you wish to get in position to take advantage of the movement. So, the OCO order is what you need. Simply place a buy order at the limit price of 1.4085 and another at 1.4015. If the market goes up, your limit order at 1.4085 will be executed, and the other at 1.4015 will be automatically canceled.

> The order if done (if executed): It consists of two different orders; the first one must be a limit order. If your limit order is executed then the order becomes active. If not, your second order remains sleepy. The second order can be a limit order, a stop loss or an OCO order. It lets you put all your orders on a trade even before you entered in position. The EUR / USD 1.4050. You decide to use an order If done to avoid constantly monitoring if your limit has been reached. You place a first order at 1.4080, a short term resistance for example. If it is executed, you want to limit your loss to 30 pips. Simply choose a stop-loss order as second-order, place it to 1.4050 (1.4080-30pips). This order will be active only if your first order is executed at 1.4080.

Trailing Stop: This is a stop which evolves in the time in the side of your trade. So, it allows the automatic moving of your stop. This operation is possible with the trading platform of your broker. After, according to your broker, conditions will be different. Some of them will propose you for example to move your stop of 10 pips each time the price takes 10 pips in the side of your trade. So, you avoid to lose time in front of your computer asking you where you will place your stop. This allows you to enjoy a trend and to limit your risk according to the move of the price.