Market Order:
A market order is an order to buy or sell a specific
currency, which is to be filled immediately at the
current exchange rate quoted on the screen. Under
normal market conditions, orders are executed automatically.
It is important to note that during extremely fast
market conditions, it is possible for a trader to
get requoted. This means that when prices are moving
rapidly, the price quoted on the screen may have
already changed by the time the order is processed.
Under no circumstances will a market order be filled
at a price which the client has not approved.
Entry Orders:
An entry order is an order that is executed when
a particular price level is reached and/or broken.
The execution of these orders is under the supervision
of the dealing desk and remains in effect until
the client cancels the order.
Stop Entry Orders:
Stop entry orders are executed when the exchange
rate breaks through a specific level. The client
placing a stop entry order believes that when
the market's momentum breaks through a specified
level, the rate will continue in that direction.
Limit Entry Orders:
Limit entry orders are executed when the exchange
rate touches (not breaks) a specific level. The
client placing a limit entry order believes that
after touching a specific level, the rate will
bounce in the opposite direction of its previous
momentum.
Stop-Loss Orders:
A stop-loss is an entry order linked to a specific
position for the purpose of stopping the position
from accruing additional losses. A stop-loss order
placed on a Buy position is a stop entry order
to Sell linked to that position. A stop-loss order
remains in effect until the position is liquidated
or the client cancels the stop-loss order.
Trailing Stop:
A trailing stop order is an order to sell a security
should the price begin to fall. This is normally
set to a few percentage points (minimum 10 points)
beneath the market price. A trailing stop order
helps to prevent losing capital should an investment
go into a tail spin.
Limit Orders:
A limit order is a limit entry order linked to
a specific position for the purpose of locking
in the gains on an existing position. A limit
order placed on a Buy position is a limit entry
order to Sell that position. A stop-limit order
remains in effect until the position is liquidated
or the client cancels the stop-limit order.
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