Orders to Enter the Market

An order is how you get into a trade and there are 2 ways to place an order to enter the market with your Forex broker.
You can place an order that gets you in the market instantly or there is an order that gets you in when the market gets to a specific price that is not the price it is at currently.

It’s important to know the difference between these orders as it will save you a lot of frustrations and time when you go to place an order.

There are the Forex traders’ generic terms and there are the MT4 terms, I will give you both.

An order to get you in the market right away is called a “Market Order”.
MT4 calls this “Instant Execution”.

An order to get you in at a different price is called an “Entry Order”.
MT4 calls this a “Pending Order”.

Now, there are different kinds of Entry Orders. There are Buy and Sell orders, each have 2 variations…

BUY ENTRY ORDERS
A Buy Order with the entry price higher than the current price is called a Buy Stop order.
A Buy Order with the entry price lower than the current price is called a Buy Limit order.

SELL ENTRY ORDERS
A Sell Order with the entry price lower than that current price is called a Sell Stop order.
A Sell Order with the entry price higher than the current price is called a Sell Limit order.

Here is another description of each of the orders:

Buy Market = enters you into a buy trade at the current price
Sell Market = enters you into a sell trade at the current price
Buy Stop = place order above price to take a long position
Sell Stop = place order below price to take a short position
Buy Limit = place order below price to take a long position
Sell Limit = place order above price to that a short position

Best regards
Russ