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How is ordering in the forex market? “Basic Training of Order Types in Forex”

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فوریه 16, 2023
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Hello, we came with a practical article in the field of forex and digital currency.

In this article, we are going to talk to you completely and comprehensively about the types of orders. You might think that because you are a trader, you know everything about the types of orders. But we have to tell you that you think wrong. It is better to stay with us until the end of this article and then share your final opinion with us in the comments section.

Our whole goal is to make you strong in the field of personal trading. If you have any questions about any part of the article or if you did not understand a point correctly, you can simply share it with us in the comments section. We will do our best to give you the answer. This article may seem simple to you, but it will definitely have many educational tips for you.

What are Market Orders?


If you are a scalper or a news trader, this option will definitely be very useful for you. When you want to open your market position at the current price, the best thing is to use this strategy. But you should pay attention to a very important point. If you are going to use Market Orders. There are no more than two modes. The first mode is that after loading, you immediately provide a stop position and profit limit position for your account.

But there is also a second mode for you, and that is that you activate your hedge position. If you use Market Order and don’t have a plan for after that, you will definitely call margin. You can also use the Market Order mode in the exchange. But you should note that the amount of spread during news is usually very high. For this reason, you should pay attention to the spread before opening a market order.

Buy Stop What is Buy Stop?


It may be that your trading strategy is such that you need to get in the middle of the trend. Usually, this strategy has a risk to reward ratio of one to two. This is why you should be careful in choosing your entry points. Suppose you are going to enter a trade when the trend line is broken. In this case, you will place your position just below the uptrend line.

When the trend line is broken, the price has jumped up. Certainly, if you wanted to use market transactions, you could not find the best market point to enter the position. The important thing is that you can set your position before the price is received.


Sell Stop What is “Sell Stop”?


This position model is exactly the opposite of the previous position. When you believe an asset is expensive and there is a possibility of it falling. You sell it at a point above its intrinsic value and put it in place when the price balances out. But you should pay attention to the fact that for sales transactions, you should also pay attention to the general trend of the market. It is dangerous for you to sell positions in small market corrections.

For example, look at the image above. When the price of Bitcoin has reached the oversaturation limit. We have used a trend line as a trigger. At some point, we move our position tangentially to the trend line, until the market trend line breaks down, we also enter the position. But you should note some important points. The first point is to move your stop position in the direction of the trend after the failure.

The second thing you should pay attention to is that the temporary fluctuations of the market do not affect your decision. This is why you must also have a strong trading psychology. Let’s assume that considering this topic, I suggest you to read our diamond hand article.


Buy limit What is “buy limit”?


Well, it is better to go to the positions of forex professionals, be careful that you should use limit positions, they are usually used for trend change points. That’s why you have to be very skilled to get these points. You need to identify a strong support. Place your position. And wait for the trend change to occur and your position to be activated. The difference between this stop position and the limit position is that it is activated when the price hits it for the first time. Of course, the position should be in the direction of the trend.

But the limit position is exactly the opposite, the price is not activated when it is first reached. Because it is against the trend, but when it changes the trend for the second time, your position will be activated. Look at the picture above, you will notice that when the market has a pullback. It is the best time to activate the limit position. As you can see in the image above, the price is caught at its last reversal point.


What is Sell Limit?


This position style is exactly the opposite of the previous position, when the market is going up. You have found a suitable resistance in the price path. When the price reacts to the resistance and turns back is exactly where your position is activated. Note that usually in limit positions, the reward to risk number is higher than 2-3. Because the smaller you make your stop, the more your risk increases, in the net

Your capital management will become important.


final word


In this article, we talked to you about stop and limit positions completely and comprehensively. On the other hand, pay attention to the fact that the same type of positioning also exists for the stop. But we advise you not to use limit positions. Because checking the size of microwaves is a very difficult task and people usually make mistakes in it. If you do not understand the types of positions, the best thing to do is to open a demo account.

Try different positions in your demo or test account. If your position is activated in the price path, it is called a stop position. But if your position is activated on the way back and forth of the price, it is called a limit position. In general, limit means betting and limiting a position.