Before you start trading there is also should you know that forex market provides different kinds of orders for trading. A Trader must understand what each order is, what part it plays in capturing profit.

There are some major types of orders that forex trader can be found on forex trading station that all traders must use : Market Order, Limit Order, Stop Loss Orders, Take Profit Orders, and Good Until Cancelled.

The two primary orders use for entering and exiting the market are Limit Order and Stop Loss Order. Once and order is placed your order to enter the market, there are two critical procedures: One Cancels the Other (OCO) and Cancel and Replace. Properly executing orders and understanding these procedures are vital steps to profitable trading.

Market Orders

A Market Order is an order that is given to a broker to buy or sell a currency at whatever the market is trading for at that moment. It also can be an entry order into the market or an exit order to get out of the market, it also called At The Market.

Trader should be caution when using Market Orders in fast moving markets. During periods of rapid rallies or down reactions gain or lose of many points may occur due to slippage before receiving the fill.

Slippage is defined as : A trade is executed between a buyer and seller and the resulting buy or sell transaction is different than the price seen just prior to order execution. On average 1-6 pips will be lost with market orders, perhaps more due to slippage. Market orders are rarely filled at the exact anticipated price.

Trading is an auction where there are buyers (bidders) and seller (offerers). The Bid is the “Buy” and the “Ask” or Offer is the Sell. All Traders must be caution when entering or exiting with Market Order.

Limit Order

Limit Orders are orders given to broker to buy or sell currency lots at a certain price or better. Limit Orders are generally used to acquire a specific price , avoiding slippage and unwanted order fills (execution price) which can happen with Market Orders.

Stop Loss orders

An order placed to close a position when it reaches a specified price. It is designed to limit a trader's loss on a position. If the position is opened with buying a currency pair, the stop loss order would be a request to sell the position when the price fall to the specified level. And vice versa. Traders are strongly recommended to use stop loss orders to limit their losses. It is also important to use stop loss orders when investors may enter a situation where they are unable to monitor their portfolio for an extended period.

Take Profit Orders

An order placed to close a position when it reaches a predetermined profit exit price. It is designed to lock in a position's profit. Once the price surpasses the predefined profit-taking price, the take profit order becomes market order and closes the position.

Good Until Cancelled (GTC)

In online forex trading, most of the orders are GTC, meaning an order will be valid until it is cancelled, regardless of the trading session. The trader must specify that they wish a GTC order to be cancelled before it expires. Generally, the make orders, stop loss orders and take profit orders in online forex trading are all GTC orders.

One cancels the Other (OCO)

Whenever entering the market, exiting the market at some future time is required. An OCO orders is a procedure and means one cancels the other. Upon entering the market, place a protective Stop Loss Orders and establish a projected profit target. That projected profit target can be your limit order.

If you simultaneously place Limit and Stop loss Orders when you enter the market, you can OCO them and walk away from your computer. What does that mean? At some future point in time either you Stop Order or Limit Order will be executed, automatically cancelling your opposing order. If the trader is so sure about the trade, he/she can execute an OCO order and walk away from the trade and the trading software will then manage the trade.

How to count results of my transaction in FOREX?

Along with was his method: for FOREX that against USD this had 2 kind sorts currency main that the public was traded in that is the Direct kind and Indirect the Example: - Direct: GBP/USD, EUR/USD, AUD/USD, etc (no matter what/USD) Indirect : - USD/JPY, USD/CHF, etc. (USD/. )

And for his calculation: like us began trading Forex this by capital breakingprep early as big as US$5000 (the regular account), afterwards the calculation method of our transaction was:

For Direct currency: our example trading in the regular Forex account kind that afterwards we inputkan quantity contract size him = US$100,000 and we did Buy in EUR/USD in the position 1.2000 and afterwards in close Sell (take the profit) in the position 1.2010, then we would the profit as big as: (1.

2010 - 1.2000) x 100000 = $100 (the profit) or was the reverse if loss also was the same his calculation

For Indirect currency: our example trading in the regular Forex account kind that afterwards we inputkan quantity contract size him = US$100,000 and we did Sell in USD/JPY in the position 110.10 and afterwards in close Buy (take the profit) in the position 110.00, then we would the profit as big as: ((110.

10 - 110.00) x 100000)/the position liquid 110.00 = $90.91 (the profit) or was the reverse if loss also was the same his calculation.