When viewed in general, most novice traders only know Market Orders and Pending Orders. However, there are actually quite a lot of types of orders in forex trading.
Similar to the meaning of ‘order’ in a restaurant; In Forex trading, the word order implies how we want to ‘order’ something, exactly what to order, and want to order now or later.
Whether to Buy/Sell at what price, how the trading position will be closed, and so on. Everyone can determine different methods of determining how to open and close positions, so that there are various types of orders in forex trading.
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In general, traders only know Market Orders and Pending Orders. However, if discussed in detail, there are actually many types of orders in forex trading. Here’s the full discussion.
1. Market Order
This is the simplest type of order in forex trading. Market Order is a type of Buy/Sell order at the best price available in the market. For example, the price on USD/JPY is currently at 109,838.
If we want to Buy USD/JPY at the market price, then it will be ‘sold’ to us at 109,852 (Ask Price).
We will click ‘buy’ on the trading platform, and the platform will immediately execute a buy order at that price. The actual picture can be seen in the image below:

Pay attention to the current price position (109,838) which is on a moss green background, as well as the Buy price at 109,852 which has a black background nearby.
These are Market Orders. Simple right? It’s like buying goods in an online shop; It’s just that what we buy is not new clothes.
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2. Limit Entry Order
Limit Entry Order is a type of order in forex trading that is placed to Buy below the current market price, or Sell above the current market price.
For example, USD/JPY is currently trading at 109,858. We want to open a Buy position if the price has dropped to 108,800.
To do this, we can just wait until the price reaches 108,000, then just click Buy with a Market Order. However, we can also place a Buy with a Limit Entry Order now, then leave it.
If later the price does drop to 108,800, then the trading platform will automatically open a sell position at the best price at that time.

Notice, in the picture it appears that the Buy price position (108.800) is lower than the current market price (109.858). Limit Entry Orders like this are a type of Pending Order.
Traders can take advantage of it, if they believe that the price will reverse after reaching a certain level, or in the fancy term, a reversal.
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3. Stop Entry Order
Stop Entry Order is also a type of Pending Order, but its function is different from Limit Entry Order.
Stop Entry Orders can be used if we want to open a Buy position above the current market price, or sell below the current market price.
This is used if we expect the price to continue moving in the same direction.

For example, USD/JPY is currently trading at 109,846 and appears to be moving upwards. We think that the price will go up faster and higher again when it hits 111,412.
Next, we can wait until the price reaches 111,412 and then click Buy with a Market Order, or now we can also place a Stop Entry Order at 111,412.
Later, because there is a Stop Entry Order, the Buy trading position will be executed automatically when it reaches the specified price, even though at that time we are not staring at the computer.
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4. Stop Loss Order
Stop Loss Orders are not used to open trading positions, but are used to prevent further losses if the price moves in an unexpected direction.
This type of order is placed after or at the same time as when we open a Buy or Sell with any type of order, and will continue to apply until the Stop Loss Order is revoked or our trading position is closed.
For example, let’s look again at the Market Order image in number one earlier. Simultaneously when we open a Buy trading position, we also set a Stop Loss at the price of 108,838 and a Profit Target at 111,411.
Our expectation is that the price will rise until it reaches the target. However, the forex market is very uncertain.
If the price does not rise continuously, but turns down to reach 108,838, then the trading platform will automatically close the trading position at that time as well as our result Loss (loss).

‘Trading positions are closed automatically with a loss’ sounds bad indeed.
However, it could be better than if the price turned out to be moving up to 107,000, and we didn’t set a Stop Loss at all, then the loss was even worse!
This Stop Loss Order is very useful if we don’t want to sit in front of the monitor, watching all day, after opening a position.
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5. Trailing Stop
Trailing Stop is a variation of a Stop Loss Order that is placed on a trading position, but can move along with price fluctuations.
Once the Trailing Stop moves, the new level changes to Stop Loss for that trading position. This move will continue as long as the price shifts according to a predetermined interval.
In the Buy scenario, the Trailing Stop cannot go down after moving up; While in the Sell scenario, the Trailing Stop cannot go up after moving down.
Let’s say there is a Buy USD/JPY position at 109,852, with a Trailing Stop interval of 20 pips. This means, the initial Stop Loss is at 109,652.
If the price goes up to 110.252, the Trailing Stop will move and be locked at 110,052.
So, suppose the price then reverses down again to 110,200 for example, then the position will remain at 110,052.
If the price drops again to 110,000, there is no need to worry because the trading position is automatically closed at 110,052 and you have managed to secure your profit up to that level.
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6. Unusual Order Types
The description above is the type of order in forex that is commonly used by traders.
However, if a trader is more experienced and has more capital, then it is possible to use several other types of orders that are not commonly used. Among them:
– Good ‘Till Cancelled (GTC)
GTC orders will remain active in the market until we decide to cancel them. The broker will not cancel the order unilaterally.
Therefore, we must be careful in implementing it and remember carefully if we have scheduled this order in trading.
– Good for the Day (GFD)
GFD orders will be active in the market until the trading day ends. But because the forex market lasts 24 hours, it’s a good idea to check with a broker to find out at what time the trading day ends.
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– One-Cancels-the-Other (OCO)
An OCO order can be said to be a combination of two orders plus a Stop Loss. Two orders of different price and duration are placed above and below the current price. When one of the orders is executed, the other order is cancelled.
For example, the current price of EUR/USD is 1.2040. We want to buy at 1.2095, or sell if the price falls to 1.1985 later.
Well, after OCO was installed, it turned out that the price went up and reached 1.2095. At that time, Buy orders were automatically executed, while Sell orders at 1.1985 were cancelled.
– One-Triggers-the-Other(OTO)
This is the opposite of OCO, because the order will be executed only after the initial order is executed.
For example, USD/CHF is currently trading at 1.2100. We think, after touching 1.2100, the pair will reverse and decline to 1.1900.
Well, the thing is, we don’t want to stare at the computer all the time. Therefore, in order to still be able to ‘catch’ opportunities even if we are not in front of the computer, we can set a Sell Limit at 1.2000, at the same time place a Buy Limit at 1.1900, and just in case, a Stop Loss at 1.2100.
As an OTO order, Buy Limit and Stop Loss will only be placed if your first order to Sell at 1.2000 runs.
Keep in mind, not all brokers provide all of these types of orders. So, if we want to use an order type, make sure our broker provides that order type.
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Well, if you are still confused about how to use various types of orders in forex trading? Just practice with virtual funds on a demo account. Get access to various demo trading accounts here.
Keep trading on a demo account while learning until you feel comfortable and can develop a profitable system, before opening a real account and investing real money in forex trading.
There is another alternative to studying these different types of orders in forex trading, namely directly from the broker. There are several forex brokers who provide free trading learning facilities for their clients, including how to operate the various types of orders available on their forex trading platforms.