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Currency Trading Order Definitions
By: James Theiss
When trading currencies online, there are several basic order types that you need to know. While there are a variety of orders that may be placed, remember to keep it simple, especially you beginning forex traders.
Market Order: Orders to get in or out of a position at the current market price. Execution is typically guaranteed, but price is not. A market order ensures that you will get into or out of the market.
Limit Order: Orders that specify that a trade must be executed at a specific price in the future. Execution is typically not guaranteed, but rather a "best efforts". They can be used to enter or exit a position.
Take Profit Order: A limit order that currency traders can use in an attempt to capture accrued profits and exit a position.
Stop Order: A stop order is used most often to protect against accruing additional losses, although execution and price is not always guaranteed. The most common use of a stop order is to set an exit point for a losing trade to try to limit risk. The term "stop" refers to stopping a loss.
Trailing Stop Order: A trailing stop order allows you to configure your stop order to continue to follow the price movement in real-time by specifying the distance in pips you would like your stop to move, depending on the market direction. As opposed to a hard stop like above.
Order Cancels Order (OCO): Also known as One Cancels Other. After entering the market, a limit order to protect profits, and a stop-loss order to limit losses can be placed. When either the limit or the stop order is executed, it will cancel the other order automatically.
Day Order: A day order remains in effect until the end of the trading day. Because the forex market is a 24 hour ongoing market, the end of the day is either a set hour or until the opening of the Asian market.
Good till Canceled Order (GTC): A good till canceled order remains active until the trader decides to cancel it, or it is triggered by the parameters set by the forex trader. It is the traders responsibility, not the dealers, to remember there is an open order.
When trading currencies in the forex market, stay away from complex order methodologies because of the increased possibility for mistakes and errors. It's just too easy to push the wrong button in a complex sequence during the fast moving trading hours.
The forex market is changing rapidly. Even as recently as two years ago it was relatively rare to find a dealer who offered trailing stop orders. Now it seems most, if not all do. So keep abreast of new technology by reading articles and forum posts. Good luck in your currency trading!
Article Source: http://www.tradeforex2000.info/forexarticledirectory
James is a successful online currency trader and also runs the popular website www.todayscurrencytrading.com
Additional Info On Forex Today
forex trading signals
As a rule of thumb, 20 MAs in 8 hour, day, week and month are useful for its directional tendency and as a resistance and support point. Not sure how much it is useful in daytrading though.
Please have a look at Eur/Usd and Usd/Jpy weekly 10 RSI and Aud/Usd monthly 10 RSI "patterns", not levels. Then you will find out primitive things work better when coupled with even simpler MAs. And RSI is useful "only in these weekly and monthly time scale" as far as I can see. You can ignore RSI in short-term scales as the inventor of RSI, Wilder, told us long ago.
forex trade
Forex TRADING: A MIND GAME
You must change your mental attitude first from a normal person to that of a speculator. Almost all traders I have met, except a few successful ones who really made millions and billions trading in the market, simply waste all their time trying to learn the easiest part in perfection, like about how to read data and charts, and trying to perfect entry and exit skills, etc. Trading is a mind game and without having a right frame of mind, it is a losing game even before it starts. Training a trader?s mind is the first step for any successful trader but almost all new traders neglect that part and that explains why more than 95% of traders are a failure in the long run.
More info on Forex software
forex trading
Forex money management is where most traders go wrong in almost all cases leaving only a few as the winner at the end of the day. Money management and discipline of mind is what makes or brakes a trader at the end of the day, not the elementary entry and exit method.
Some Forex Currency Trading Stories
Stronger UK Employment Numbers Fail to Help the British Pound
Wed, 16 Apr 2008 20:35:19 -0400
The British pound strengthened against the US dollar, but that is more a function of dollar weakness than pound strength because the currency has fallen...
Currency Trading Order Definitions
By: James Theiss
When trading currencies online, there are several basic order types that you need to know. While there are a variety of orders that may be placed, remember to keep it simple, especially you beginning forex traders.
Market Order: Orders to get in or out of a position at the current market price. Execution is typically guaranteed, but price is not. A market order ensures that you will get into or out of the market.
Limit Order: Orders that specify that a trade must be executed at a specific price in the future. Execution is typically not guaranteed, but rather a "best efforts". They can be used to enter or exit a position.
Take Profit Order: A limit order that currency traders can use in an attempt to capture accrued profits and exit a position.
Stop Order: A stop order is used most often to protect against accruing additional losses, although execution and price is not always guaranteed. The most common use of a stop order is to set an exit point for a losing trade to try to limit risk. The term "stop" refers to stopping a loss.
Trailing Stop Order: A trailing stop order allows you to configure your stop order to continue to follow the price movement in real-time by specifying the distance in pips you would like your stop to move, depending on the market direction. As opposed to a hard stop like above.
Order Cancels Order (OCO): Also known as One Cancels Other. After entering the market, a limit order to protect profits, and a stop-loss order to limit losses can be placed. When either the limit or the stop order is executed, it will cancel the other order automatically.
Day Order: A day order remains in effect until the end of the trading day. Because the forex market is a 24 hour ongoing market, the end of the day is either a set hour or until the opening of the Asian market.
Good till Canceled Order (GTC): A good till canceled order remains active until the trader decides to cancel it, or it is triggered by the parameters set by the forex trader. It is the traders responsibility, not the dealers, to remember there is an open order.
When trading currencies in the forex market, stay away from complex order methodologies because of the increased possibility for mistakes and errors. It's just too easy to push the wrong button in a complex sequence during the fast moving trading hours.
The forex market is changing rapidly. Even as recently as two years ago it was relatively rare to find a dealer who offered trailing stop orders. Now it seems most, if not all do. So keep abreast of new technology by reading articles and forum posts. Good luck in your currency trading!
Article Source: http://www.tradeforex2000.info/forexarticledirectory
James is a successful online currency trader and also runs the popular website www.todayscurrencytrading.com
Additional Info On Forex Today
forex trading signals
As a rule of thumb, 20 MAs in 8 hour, day, week and month are useful for its directional tendency and as a resistance and support point. Not sure how much it is useful in daytrading though.
Please have a look at Eur/Usd and Usd/Jpy weekly 10 RSI and Aud/Usd monthly 10 RSI "patterns", not levels. Then you will find out primitive things work better when coupled with even simpler MAs. And RSI is useful "only in these weekly and monthly time scale" as far as I can see. You can ignore RSI in short-term scales as the inventor of RSI, Wilder, told us long ago.
forex trade
Forex TRADING: A MIND GAME
You must change your mental attitude first from a normal person to that of a speculator. Almost all traders I have met, except a few successful ones who really made millions and billions trading in the market, simply waste all their time trying to learn the easiest part in perfection, like about how to read data and charts, and trying to perfect entry and exit skills, etc. Trading is a mind game and without having a right frame of mind, it is a losing game even before it starts. Training a trader?s mind is the first step for any successful trader but almost all new traders neglect that part and that explains why more than 95% of traders are a failure in the long run.
More info on Forex software
forex trading
Forex money management is where most traders go wrong in almost all cases leaving only a few as the winner at the end of the day. Money management and discipline of mind is what makes or brakes a trader at the end of the day, not the elementary entry and exit method.
Some Forex Currency Trading Stories
Stronger UK Employment Numbers Fail to Help the British Pound
Wed, 16 Apr 2008 20:35:19 -0400
The British pound strengthened against the US dollar, but that is more a function of dollar weakness than pound strength because the currency has fallen...
posted by FX man | 7:54 PM
|
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