Forex for Dummies
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The Forex Dealing Platform provides sophisticated order entry and tracking. Orders may be entered at any rate using the following orders types:

* Limit Orders
An order with restrictions on the maximum price to be paid or the minimum price to be received.

If a trader is long USD/CHF at 1.4627, a limit order would be entered to sell dollars above that price, for example, at 1.4800.
* Stop Loss Orders
Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.

If the trader above is long USD at 1.4627, a stop loss order could be left at 1.4549, in case the dollar depreciates below 1.4549.

As a rule, sell stops are filled on our bid, and buy stops are filled on our offer. This allows us to fill client stop orders at the rate they requested in almost every case. In the rare instance that the market gaps over a requested rate, the stop is filled at the best available price. This is an important point for traders who are accustomed to being filled on sell stops when the offer reaches the requested order rate. For example, if a stop order is placed to sell USD/CHF at 1.4549, the trader will be filled when the bid reaches 1.4549 (i.e. the bid/offer is 1.4549/54).
* One Cancels Other Orders (OCO's)
A contingent order providing that one part of the order is cancelled if the other part is executed. This is a particularly useful order type in that it allows traders to execute specific trading strategies based on technical analysis - without having to watch the market tick by tick.

As above, with the trader long USD/CHF at 1.4627, a typical OCO order would be a stop loss at 1.4562 and a limit (take profit) at 1.4700. If one part of the order is filled, the other is automatically cancelled.

Orders remain open until they are triggered or cancelled.

Tags:  order types