Types of ORDER

Types of Orders

3 basic orders: Market, Limit and Stoploss.

Market Order – Is simply an order to buy or sell at the current
market price.

If we have a USD/CAD quote of 1.0030/1.0033 and we place a
market order to buy, we will buy at 1.0033. If we place a market
order to sell we would sell at the bid quote, in this case 1.0030.

Limit Order – This order is used when you want to enter at a
certain price. Limit orders are used when a trader doesn't want to
sit and wait for the order to get filled. They can walk away from
their screen knowing the limit order is in place.

Stoploss Order - This order relates to a trade that has already been
taken to negate additional losses if the trade does not work in our
favor. It will stay open until the order is hit or canceled. As an
example, if we were long the USD/CAD at 1.0056, we could place
a stoploss order at 1.0036 to limit our loss to a max of 20 pips.

With the stop loss order in place we don't have to baby-sit the
trade.


Additional orders used:

GFD (Good for day) Order – This order stays open until the end of
the day, which is typically 5:00 pm EST (the close of US equities)
To be sure ask your broker the details of when the cancel GFD
orders.

GTC (Good Till Canceled) – Pretty simple...this order stays open
until you cancel it. It is the trader’s responsibility

OCO (Orders Cancels Other) – This order lets the trader place a
stoploss and profit limit order. Once one is triggered, the other
order is then canceled.

The USD/CAD quote is currently 1.0035/1.0038. We are
anticipating a large move to come either to the upside or downside.


So we place a buy limit above where we think the price will
breakout and run up at 1.0050 and we want to place a limit short
order at 1.0025 on the anticipation of a breakout to the downside.

Once one of these orders is filled, the other is canceled
automatically.