Types of Orders

The term "Order" refers to how you will enter or exit a trade. There are many different types of orders that can be placed in the market. You can choose to execute a trade at the current market price. Alternatively, you can create a conditional order to execute a trade at a future market price, above or below the current market rate.

For this purpose, several types of trade orders are used. An order is an instruction of a brokerage firm's client to conduct a trade operation. In the platform, orders are divided into two main types: market and pending. Besides them there are "Stop Loss" and "Take Profit" orders.

Market Orders

A market order is an instruction given to a brokerage company to buy or sell a financial instrument. Execution of this order results in committing a deal. The price at which the deal is conducted is determined by the type of execution that depends on the symbol type. Generally, a security is bought at the Ask price and sold at the Bid price.

Take Profit

The Take Profit order is intended for gaining the profit when the security price has reached a certain level. Execution of this order leads to a complete closure of the position. It is always connected to an open position or a pending order. The order can be placed only together with a market or a pending order. This order condition for long positions is checked using the Bid price (the order is always set above the current Bid price), and the Ask price is used for short positions (the order is always set below the current Ask price).

Stop Loss

This order is used for minimizing of losses if the security price has started to move in an unprofitable direction. If the price of the instrument reaches this level, the position is fully closed automatically. Such orders are always associated with an open position or a pending order. The order can be placed only together with a market or a pending order. This order condition for long positions is checked using the Bid price (the order is always set below the current Bid price), and the Ask price is used for short positions (the order is always set above the current Ask price).

Types of Orders

A pending order is the trader's instruction to a brokerage company to buy or sell a security in future under pre-defined conditions. Types of pending orders:

Buy Limit – a trade request to buy at the Ask price that is equal to or less than that specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price, having fallen to a certain level, will increase.

Buy Stop – a trade order to buy at the "Ask" price equal to or greater than the one specified in the order. The current price level is lower than the value in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on increasing.

Sell Limit – a trade order to sell at the "Bid" price equal to or greater than the one specified in the order. The current price level is lower than the value in the order. Usually this order is placed in anticipation of that the security price, having increased to a certain level, will fall.

Sell Stop – a trade order to sell at the "Bid" price equal to or less than the one specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on falling.

Buy Stop Limit – this type combines the two first types being a stop order for placing Buy Limit. As soon as the future Ask price reaches the stop-level indicated in the order (the Price field), a Buy Limit order will be placed at the level, specified in Stop Limit price field. A stop level is set above the current Ask price, while Stop Limit price is set below the stop level.

Sell Stop Limit – this type is a stop order for placing Sell Limit. As soon as the future Bid price reaches the stop level specified in the order (Price field), a Sell Limit order will be placed at the level specified in Stop Limit Price field. A stop level is set below the current Bid price, while Stop Limit price is set above the stop level.

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