Types of Orders

Types of Orders  Market Orders An order to buy or sell a currency at the current market price. When placing a market order, the currency trader specifies the currency pair he wants to buy or sell. (EUR/USD,USD/JPY, etc) and the number of lots he is interested in buying or selling. Limit Orders An order to buy or sell currency at a specified price or better. Trader specifies currency and price. Stop Orders Order that is activated when a specified price is reached. A stop order becomes a regular market order when the exchange rate reaches a specified level. Stop orders can be used to enter the market on momentum or to limit the potential loss of a position.