Online forex trading brokers offer a range of different order types to fulfill different trading needs. These include the following.

  • Simple Orders: Include the simple buy and sell orders that tell the broker to enter and exit the trades. These are basic order types offered by all brokers; also known as market orders. The general idea is to buy or sell at existing market price.
  • Short Selling Orders: In stock and futures trading, it refers to selling an instrument after burrowing it from the broker. This practice need a margin account and not all brokers offer all instruments for short selling. In forex trading, going short or long does not make any real-difference as every trade include longing a current by shorting other.
  • Limit Orders: These are used for getting better executions. Limit buy orders are executed at a specified price or lower and limit sell orders are executed at specified price or higher.
  • Stop Orders: These are used for limiting the risk. The most common use of them is as stop-losses. The trades are executed when the price reaches at a specific level. A buy stop order placed for covering short position is executed when the price hit a high level and sell stop order placed for covering long position is executed when the price drop to a low level. When the specific price is reached stop orders are executed as market orders or limit orders.
  • Trailing Stop Orders: They are used to lock the profit. A trailing stop dynamically follows price trend and are executed when the trend reverses by locking the profit.
  • One Cancels the Other Order: They are more than one orders placed together. When one is executed, others are automatically cancelled. They are used to achieve specific goals and to cover both upward and downward price changes.
  • Good Till Cancelled Orders: These are orders which are either executed or remains active until the trader cancels. Many brokers have a specific period of 30 or 90 days for keeping the order active.
  • Fill or Kill Order: The orders are placed to be executed in full or not at all. There will be no partial executions.

This article is written for Orient Financial Brokers, a leading Online Forex Broker Saudi Arabia offering Forex, precious metal, commodity and share trading services across middle-east.