The Forex market order is an order to buy and sell currencies at the current market prices. The order execution is immediate. Forex orders can be placed through phones or online.

Process of placing Forex orders-

The trader states the chosen currency pair and the size of deal to the trading dealer.

The dealer states the put and call price of the selected currency pair.

The trader selects one of the two prices and sometimes, traders may ask for re-quotes.

The dealer verifies the deal and conveys the confirmation message to the trader.

Note – Always confirm for two-way quotes before making the deals. If the traders do not ask for the bid and ask quotes, the firms will take advantage of the traders’ unawareness.

There are three types of orders limit order, stop orders and order cancels other.

Limit Order –

The limit order is an order put to buy or sell the currencies at a specific price. This order has two variables one is price and other one is duration.

The investor states the price that is suitable for him to trade the currency pair and defines the duration up to which the order will remain active.

Good Till Cancelled –

A GTC is an order that remains live in the trading market until the investors do not want to cancel the order.

The dealer cannot cancel the order at any instance of time so investors have to remember that they are having the order or deal to trade.

Good for the Day –

A GFD remains live in the trading market until the trading day ends. As the FX is a continuous trading market, so the end of the day is the set time hour.

Stop Orders-

It is an order that is put to trade currency at a specified price. This order has the same two variables.

The difference lies between the limit and stop order is that the stop order is placed to bound loss possibilities on the trading deal and the limit order enters in to the pre-existing positioning of the FX market and fetch good returns.

The same GFD and GTC variables are used to specify the duration of the orders.

Order Cancels Other –

This order is an amalgamation of the two limit orders or two stop orders, the two orders are placed with the specified prices and duration variables mentioned above and below the current prices. When the one order executes the other, one is cancelled.