A beginner always has a lot of questions, especially if he is an inexperienced trader. We’ll give you an answer to the question, what is the order. Forex order is a currency’s buy or selling instruction given to the dealer.
There are two types of orders (types of transactions):
1. Market orders.
They are the orders to buy or sell one currency for another at present market price. Dealer gives you an asking price, you agree or reject it. One type of orders have acquired popularity on the market recently, this is the so-called Quote order (Quote is a query about double quotation). “Quote” is an inquiry of trader to dealer simultaneously about both prices for buying and for selling (Ask and Bid), when a trader gets an answer, he can choose the operation (buying or selling) and close a transaction.
2. Suspended market orders.
Suspended market order is an instruction to sell or buy currency at stated price and only the stated volume. On Forex, as well as on other markets there are two types of suspended market orders – orders below the market and above the market.
2.1 Orders “below the market” or Stop-orders.
The order “below the market” means that you wish to buy more expensively, than a current level of prices in the market or to sell more cheaply, than a current price level in the market. The term “below the market” says that you give to the dealer the order to do an operation at the price, which will be worse for you, in comparison with the current price level in the market.
In a funny sort of way instead of buying cheaper, you buy more expensively, but many trading strategies use such orders. For example, it is considered that this accelerates movement.
There are two types of Stop-orders:
2.1.1 The first is a buy stop order. This is the order for buying above a current level of price in the market (sometimes say “above the market”).
2.1.2 The second is a sell-stop order. This is an order for selling below a current level of price in the market.
2.2. The second type is Limit-order.
Limit-order is the order to buy more cheaply, than the current level of prices in the market is or to sell more expensively. You give to a dealer the order to buy or to sell at the most favourable price, in comparison with the current level of prices, which can be, as you predict, in the future.
So, there are also two types of Limit orders.
2.2.1. The sell limit-order is an order on selling at the price above the current level of prices in the market (selling more expensively, than now).
2.2.2. The buy limit-order is an order on buying at the price below the current level of prices in the market (buying cheaper, than now).
The selection of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.
It is very important that you follow a final piece of advice – today the web technologies give you a truly unique chance to choose exactly what you require at the best terms which are available on the market. Strange, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get any foreign currency trading info that you need.
Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a wise and nicely balanced decision.
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