Types
of Orders
Market
Orders:
A market order is an order to
buy or sell which is to be
filled rapidly at the current
exchange rate quotation under
normal market conditions. On larger orders, if
PFG is unable to fill the
order at the specified rate, PFG will send the client a
new price representing the
current market rate. Under normal
market conditions a market order
be filled at a price to which
the client has approved.
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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
are under the supervision of the
dealing desk and remain 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.
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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