Order Types Used In Forex Trading


Order Types Used In Forex Trading

Types Of Orders In Forex Trading

Market Order

Orders are the most commonly used entry order type since they allow you to trade at the lowest price. For instance, if EUR/USD is trading at a retail price of 1.3280, If you make an order, in this scenario, you could purchase the currency you want to purchase at 1.3280.

The preceding scenario demonstrates the most optimal situation for executing market orders. However, caution should be taken when using this type of order in liquid markets. 

For instance, you could make an earlier order to buy USD/EUR. However, when the market is volatile, there is a chance that a price difference could occur in the next minute and the most competitive prices are likely to be higher than what you anticipated.

Limit Order

Limit orders are entry orders utilized when you wish to buy something below or sell for more than the current market value.

For instance, if EUR/USD trades at 1.3280 and you'd like to purchase it for 1.3270, Then you'll put an order for a limit below the market price. In general, an order to limit is used when we wish to buy or sell at a lower price.

Stop Order

An order can be used to trade at a higher price or less than the price without the need to sit before a video screen in anticipation of the market reaching the desired level.

For instance, if you want to buy for EUR/USD when it exceeds the 1.3290 mark, the pair is in the market at 1.3280. In this scenario, you'll be able to make an order to join the market when it crosses 1.3291.

Stop Loss Order

A purchase order can be used to close positions and is the most effective way to safeguard your capital. It is also an insurance policy to prevent losing more than the amount you're willing to risk if the market goes against you.

For instance, if you receive EUR/USD at 1.3280, If you do, you'll be allowed to place the stop loss order at 1.3260. This means you should set a loss limit that does not exceed 20 pip.

There's a certain point at which you'll be losing precisely planned, in the instance of a price gap that results in the market exceeding the limit of the stop and in this case, the platform will issue the stop loss request at the price of the competition. This can occur, however, in sporadic instances.

Trailing Stop-loss Order

Trailing Stop can be an effective waiting order that follows the market since it shifts towards your direction, constantly removing the need to keep an eye on the platform screen. 

You'll be able to place the trailing stop at an exact level, which is an exact distance away from the price, in which case the purchase order can change direction and move upwards or downwards depending on the trading occupancy in your way, which is a guarantee of an exact percentage of profits.

For instance, suppose you find USD/EUR at 1.3280 and place your trailing stop at ten pip away. If we suppose that the pair climbed to 1.3300 in this scenario, the stop-loss position will shift 20 pip to 1.3290, and you've been able to claim 10 pip of profit that you won't lose.

What is a Forex Robot?

MetaTrader 4

The platform MetaTrader4 offers comprehensive solutions to customers' requirements, such as news feeds, charts and lots others. It is possible to utilize MQL4, the native AI language on MetaTrader 4. MQL4 allows you to write customized indicators or trading strategies referred to as Expert Advisors on paper.

Expert Advisors

Expert Advisor (EA) is among all the names used to describe Forex robots designed to work in MetaTrader 4. MetaTrader 4 platform. Due to the trader's ability to alter his settings for the advisor's expertise, they can benefit from this feature as part of any strategy for trading or risk management program, provided that the creator can code these settings in the software.

For instance, a trader could design an expert advisor for opening a market position with a specific site near the intersection of moving averages.


The primary benefit of using the forex robot is the ability to free traders of the adverse effects of human emotions. This could be a significant drawback for many traders if they do not handle it properly. 

The feelings of anxiety, fear and stress can build up easily and quickly when you trade manually and can cause the trader to lose funds and fall victim to anger.

In contrast, the robot permits the execution of the strategy with ease and at the highest degree of precision. It can also perform all the complex calculations for risk management components in the shortest time and quicker than the trader. The possibilities are endless. 

However, you'll also be able to develop robots that trade around the clock and in various markets, meaning you don't have to sit at a desk throughout the day and the night.

In short, the forex robot will manage a significant portion of the work and burden that traders have to endure. It is important to note that traders work hard during the initial stage of the trading software, particularly in the development and testing phase of the ideas.


There is no quick and easy way to earn profits in the market for forex, and it's not disregarded that there are disadvantages and limitations that come with using robots to trade forex.

One of the dark sides is that there's a lot of competition in the forex market. It isn't easy to create an automated system sufficient for decent performance.

The reality is that testing the efficiency of a robot shouldn't be restricted to just a few weeks, as it is necessary to apply the test to trading information for months or even years.

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