The Full Set of Forex Trading Orders
- What is a Trading Order?
A trading order is an instruction to your broker to buy or sell a financial asset on your behalf. The order-driven system in all modern exchanges automatically matches buyers and sellers.
The proper use of a trading order adds control to your positions and significantly reduces risk and trading costs. Different brokers may offer different sets of trading orders, and therefore, when choosing a broker, you must ensure that the full range of trading orders is available.
Market and Pending Orders
Generally, trading orders are divided into market orders and pending orders.
- What is a market order?
A market order is an order to buy or sell a financial asset immediately, at any given price. This order type guarantees execution but does not guarantee the execution price.
- What is a pending order?
Pending orders are executed at a pre-specified market price. A pending order can be placed in advance, or afterward, a position is opened, it can also be modified at any time. The great advantage of a pending order is that eliminates the risk of slippage.
- What is Slippage?
Slippage refers to the difference between the price expected and the price at which the order is actually filled.
This article presents three basic investment concepts and a series of significant portfolio management ratios.
