WHAT ARE THE FOREX ORDER TYPES?

WHAT ARE THE FOREX ORDER TYPES?

What is a Market Order?:

A buy or sell order given at the current market price is called a “Market Order”. A market order is a type of order that is executed immediately. The customer who places a market order buys or sells the investment instrument he/she has chosen according to the current price.

Stop Orders:

Stop orders are used to close open positions when the price reaches a certain level. Since stop orders can be applied to open positions, they have a strong relationship with the current market price. SL and TK orders can be applied to all open positions, regardless of trading volume.

Stop Loss:

In sales transactions, orders that automatically close the position when the price reaches that level by entering a specified price level above the price entered into the transaction, and in purchase transactions, orders that automatically close the position when the price reaches that level by entering a specified price level below the current price are called “Stop Loss” orders. In the event of a possible loss, the transaction is automatically closed when the price reaches the specified level, preventing further loss. These types of orders are called “Stop Loss” orders. A Stop Loss order is a type of order that allows the investor to determine the level of loss they can tolerate and prevent further loss. Stop Loss orders can be applied to both buy and sell orders.

Take Profit:

In purchase transactions, orders that automatically close the position when the market price reaches that level by entering a level above the price entered in the transaction, and in sales transactions, orders that automatically close the position when the price reaches that level by entering a price determined below the current price are called “Take Profit” orders.

TP order is a forward transaction closing order and the function of this order type is to close the position with profit. TP order is entered with the prediction that the market price will not increase any further. These are orders that allow the investor to close the transaction at the point where the target profit is reached.

Buy Stop:

A type of pending order used on trading platforms. It is used to create a buy position at a price above the current price. Investors usually place a buy stop order at a price level where they think the price that has entered the consolidation process will continue in the same direction when it passes a resistance level determined above. A price higher than the current price should be selected when sending this order type. A price below the current price is not accepted by the server. Once the buy stop order is successfully placed, it is entered into the order book by the system with a sequence number. After this, the investor’s disconnection or exit from the trading platform does not eliminate the order. The market is monitored by the system and the order is executed when the current price reaches the investor’s order price, regardless of whether the investor is online or not.

Sell Stop:

It is a type of order that is used to enter a sell transaction at a price level below the market price.

Although it may not seem logical to sell at a low price, the investor uses the “Sell Stop” order in cases where he expects the price to fall rapidly when it breaks the level he has technically determined.

Limit Emirleri (Buy Limit/Sell Limit):

A rational investor who wants to trade in the Forex market always wants to buy at the lowest price in buying transactions and enter a position at the highest price in selling transactions. Limit orders are orders that automatically open a position when the market price reaches the optimum level determined by the investor.

Buy Limit:

A type of pending order used on trading platforms. It is used to create a buy position at a price below the current price. Investors usually place a buy limit order at a price level where they think a continuing decline will encounter support and change direction and begin to move upwards. A price below the current price should be selected when sending this order type. A price above the current price is not accepted by the server. Once a buy limit order is successfully placed, it is entered into the order book by the system with a sequence number. After this, the investor’s connection being disconnected or exiting the trading platform does not eliminate the order. The market is monitored by the system and the order is executed when the current price reaches the investor’s order price, regardless of whether the investor is online or not.

Sell Limit (Satış Limit):

An investor who expects the market price to rise above the current level can place a sell limit order at the price level he/she determines and perform an automatic transaction when the price reaches the desired level. These types of orders are called “Sell Limit” orders. Sell limit orders are only placed for sell-side positions.