Types of Trades
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Thread: Types of Trades

  1. #1
    Join Date
    Apr 2006
    Posts
    20

    Default Types of Trades

    This is a glossary of different types of trades, should be helpful for those of us just getting started. I found this as FX Solutions.

    Types of Foreign Exchange OrdersEntry Orders: An order, stop or limit, initiating an open position and executed when a specific price level is reached and/or broken. The execution is handled by the dealing desk and the order is in effect until cancelled by the client.
    Entry Limit Orders: An order initiating an open position to sell as the market rises, or buy as the market falls. The client believes the market will reverse direction at the level of the order.
    Entry Stop Orders: An order initiating an open position to sell as the market falls, or buy as the market rises. The client placing the order believes that prices will continue to move in the same direction as the previous momentum after hitting the order level.
    Limit Orders: A limit order is an order tied to a specific position for the purpose of locking in the gains from that position. A limit entry order placed on a buy position is an order to sell. A limit order placed on a sell position is an order to buy. A limit order remains in effect until the position is liquidated or cancelled by the client.
    Market Order: An order to buy or sell which is to be filled immediately at the prevailing currency price.
    OCO (One Cancels the Other): A stop-loss order and a limit order linked to a specific position. One order, the stop, is to prevent additional loss on the position, and one order, the limit is to take profit on the position. When either order is executed, closing the position, the other is automatically cancelled.
    Stop-Loss Orders: An order linked to a specific position to close that position and prevent additional losses. A stop-loss order placed on a buy position is an order to sell that position. A stop-loss order on a sell position is an order to buy that position. A stop-loss order remains in effect until the position is liquidated or cancelled by the client

    Found at FX Solutions
    Last edited by ladyviper; 04-27-2006 at 09:13 PM.

  2. #2
    Join Date
    Apr 2006
    Posts
    23
    That is another good reference guide, Thanks Lady! I think I am going to print them out to have on hand. After awhile I won't need the, but now I need all the help I can get. Do you have the link to that site?

  3. #3
    Join Date
    Apr 2006
    Posts
    21
    Handy guide, great for those of us that are just starting out. Printing it out isn't a bad idea, easier than digging for it on the net when you are using a demo.

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