There are a host of order-types that a trader needs to be aware of, inorder to master the Forex Exchange in Malaysia. Orders need to be placed at the appropriate time and instance in order to maximize a successful outcome. Those that are placed outside of their right bounds can drive your trades off track and limit your chances of profit. Here are the major order types in Forex trading, and all you need to know about them.
Market Order
This is the most prevalent type of order in CFD trading in Malaysia. It is used to immediately execute an order at the price of that time.
Notes
This type of order can be used to enter a new position or to come out of one, either of which through buying or selling.
Stop Order
This type of order is meant to be pinned to a particular price. When this specific price value is reached, it initiates a market order. The order can be used for buying, as well as selling. When buying, this order purchases a currency pair when the price reaches the value specified. Meanwhile, when selling, this order sells the currency pair when the market value reaches the designated price or lower.
Notes
This order can be used to manage and reduce the extent of your losses. Before stepping into a transaction, a trader roughly knows where he needs to position his exit if the market goes against his wishes. Through this order, if the market does turn against him, the trader can exit the trade at a specified price, thereby eliminating the chance of an uncontrollable dive.
Stop orders can also be used to protect profits. In the case of a profitable trade, the function of a stop order can be utilized so as to guard the profit made. When a long trade has been rendered positive, you can situate a stop-sell order in the area of profit so as to prevent loss in the case of a sudden market swing.
Limit Order
This is an order that is instated when a trader looks to step into a new position at a particular price level, or to step out of his current position at a certain price. This order results in the purchase of a currency pair when the price value reaches the specified level.
Notes
These are used to pre-define and reach a range of profit. With a long trade, you can use a limit-sell order to set a profit point, while with short trades, you can use a limit-buy order to do the same.
Apart from having good skills, one needs to have a robust education with the Forex exchange. Understanding the various types of orders is vital to optimally using the tools available for a profitable response. You can get in touch with WesternFX to gain expert insight on the subject.
Market Order
This is the most prevalent type of order in CFD trading in Malaysia. It is used to immediately execute an order at the price of that time.
Notes
This type of order can be used to enter a new position or to come out of one, either of which through buying or selling.
Stop Order
This type of order is meant to be pinned to a particular price. When this specific price value is reached, it initiates a market order. The order can be used for buying, as well as selling. When buying, this order purchases a currency pair when the price reaches the value specified. Meanwhile, when selling, this order sells the currency pair when the market value reaches the designated price or lower.
Notes
This order can be used to manage and reduce the extent of your losses. Before stepping into a transaction, a trader roughly knows where he needs to position his exit if the market goes against his wishes. Through this order, if the market does turn against him, the trader can exit the trade at a specified price, thereby eliminating the chance of an uncontrollable dive.
Stop orders can also be used to protect profits. In the case of a profitable trade, the function of a stop order can be utilized so as to guard the profit made. When a long trade has been rendered positive, you can situate a stop-sell order in the area of profit so as to prevent loss in the case of a sudden market swing.
Limit Order
This is an order that is instated when a trader looks to step into a new position at a particular price level, or to step out of his current position at a certain price. This order results in the purchase of a currency pair when the price value reaches the specified level.
Notes
These are used to pre-define and reach a range of profit. With a long trade, you can use a limit-sell order to set a profit point, while with short trades, you can use a limit-buy order to do the same.
Apart from having good skills, one needs to have a robust education with the Forex exchange. Understanding the various types of orders is vital to optimally using the tools available for a profitable response. You can get in touch with WesternFX to gain expert insight on the subject.
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