Different Types of Market Orders (Part I)
Forex markets are open 24 hours a day, five days a week except on weekends. You cannot sit in front of your computer screen all the day watching the markets move. Currency traders use market orders to catch market movements when they are not in front of their screens. A market move is just likely to happen while you are asleep or in the shower as while you are sitting in front of your computer screen.
Market orders are very critical to your trading success. Think of the different types of market orders as trades waiting to happen. If you enter an order and the subsequent price action triggers its execution, you are in the market so be as careful as possible while playing with the market orders. Trading can be very difficult without these market orders.
Professional currency traders routinely use market orders to capture sharp short term price fluctuations, limit risk in volatile or uncertain markets, implement a trade strategy from entry to exit and preserve trading capital from unwanted loss. Market orders are essential for maintaining trading discipline.
Forex markets can be notoriously volatile and difficult to predict, using market orders can help you capitalize on short term price movements while limiting the impact of any adverse price movements.
If you dont use market orders, you probably dont have a well thought out trading plan. While there is no guarantee that the use of market orders will limit your losses and protect your profits in all market conditions, a disciplined use of market orders will help you quantify the risk that you are taking. It will also give you the peace of mind in trading.
Different types of market orders are available in currency markets to forex traders. When you open an account with a forex broker, you should add the market orders to the list of questions you need to ask the broker because you should know that not all market orders are available at all online forex brokers.
Take Profit Orders: An old market saying, You cant go broke taking profits. Use the take profit order to lock in profits when you have an open position in the market. Suppose you are short EUR/USD at 1.2354. Your take profit order will be to buy back the position and be place somewhere below 1.2334 making a profit of 20 pips. If you are long GBP/USD at 1.8845, your take profit order will be to sell the position somewhere higher close to 1.8875.
Limit Orders: A limit order is any market order that triggers a trade at more favorable levels than the current market price. Dont forget the saying, Buy low and sell high. If the limit order is to buy, it must be entered somewhere below the current market price. If the limit order is to sell then it must be placed somewhere above the current market price. - 23162
Market orders are very critical to your trading success. Think of the different types of market orders as trades waiting to happen. If you enter an order and the subsequent price action triggers its execution, you are in the market so be as careful as possible while playing with the market orders. Trading can be very difficult without these market orders.
Professional currency traders routinely use market orders to capture sharp short term price fluctuations, limit risk in volatile or uncertain markets, implement a trade strategy from entry to exit and preserve trading capital from unwanted loss. Market orders are essential for maintaining trading discipline.
Forex markets can be notoriously volatile and difficult to predict, using market orders can help you capitalize on short term price movements while limiting the impact of any adverse price movements.
If you dont use market orders, you probably dont have a well thought out trading plan. While there is no guarantee that the use of market orders will limit your losses and protect your profits in all market conditions, a disciplined use of market orders will help you quantify the risk that you are taking. It will also give you the peace of mind in trading.
Different types of market orders are available in currency markets to forex traders. When you open an account with a forex broker, you should add the market orders to the list of questions you need to ask the broker because you should know that not all market orders are available at all online forex brokers.
Take Profit Orders: An old market saying, You cant go broke taking profits. Use the take profit order to lock in profits when you have an open position in the market. Suppose you are short EUR/USD at 1.2354. Your take profit order will be to buy back the position and be place somewhere below 1.2334 making a profit of 20 pips. If you are long GBP/USD at 1.8845, your take profit order will be to sell the position somewhere higher close to 1.8875.
Limit Orders: A limit order is any market order that triggers a trade at more favorable levels than the current market price. Dont forget the saying, Buy low and sell high. If the limit order is to buy, it must be entered somewhere below the current market price. If the limit order is to sell then it must be placed somewhere above the current market price. - 23162
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know Forex Scalping. Learn Forex Trading!
posted by X - Men @ 2:40 AM
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