There are three main types of orders traders use.
Knowing when each one is applicable helps them make better decisions.
Market order represents an order to buy or sell a currency at a market price. It is used when a trader wants to place an order, based on the price of the currency. Traders often use market orders to enter a new position or exit it.
The stop order automatically closes trader’s positions when prices move in a different direction than anticipated. Traders can easily place stop order when they want to trade at an indicated price. Stop order is used to enter or exit new positions.
Limit order is an order traders place to buy and sell at a certain limit. This type of order is used when traders want to enter or exit a position at a specified price. Limit order can be used to buy currencies below the market price or sell above the market price.