Placing Forex Market Orders

An investor in the forex market must consider an order to be the equivalent to a trade. If the market conditions fall into place as desired, the orders waiting execution in a trader’s account will launch the trade into the market. Orders are valuable trading tool for every trader to utilize.

Keys to Placing and Managing Orders

  • Cancel Unwanted Orders

Some trading platforms have two types of standing orders:

-Associated with a Position: These orders remain valid as long as the position is open. The order amount adjusts if the traders increases or reduces the associated position.

-Independent of Positions: These orders remain active even if the trader closes out of position. A trader must remember to cancel these types of orders even when he closes a position.

  • Be Aware of the Order’s Expiration

When an order expires does vary. Most orders are good-’til cancelled meaning the order is valid until the trader officially cancels it. Or, it may be good until the end of the day meaning the order remains active until it automatically expires at the end of the trading day (5 p.m. eastern time). Good-’til cancelled orders will expire eventually around ninety days on some trading platforms, depending on the broker’s policy.

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  • Enter Every Order Correctly

The forex market moves quickly so it doesn’t hurt to take a few extra moments to double-check the order’s entry. The trader should verify the currency pair, order type, amount and price. Typically, most trading platforms reject orders that are undoubtedly wrong. But there are other errors the computerized system may not catch that the trader must.