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Importance of Orders in Forex Markets
There is always a need for automation processes in forex markets for easy trading. This is due to the reason that these markets are running 24/7. Therefore, the investor holdings’ value and net worth are continuously changing 24/7. Hence, if a position that is open is not managed carefully for many days, its value will definitely be altered drastically. Also, we need to understand that it is not always possible to manage all of the void positions actively 24 by 7. You need to hire someone that works round the clock without any time delay.
Therefore, this is the scenario where orders of Forex markets come around as a handy tool. These are commonly known as tools that traders, investors, and brokers use in Forex markets for managing open positions passively. These tools are allowing the investors and traders to be sure that their trading values will remain within certain boundaries even if the forex markets are active 24/7.
Market Order
Markets orders are known as the most favorite and common type of Forex orders that are used actively in forex markets. It is a simple order where you purchase something at the current price of the market. Therefore, if you have never tried buying anything online, the button “buy now” is a kind of order that performs the same functionality as the order is doing in forex markets.
We can say that a market order is an order type that has taken the position of open positions. All of the losses and profits are now accrued using this order for becoming realized whenever the open position is closed. This order works immediately and effectively while filling open positions.
Pending Order
Pending order is those instructions that are usually executed during buying and selling trades like a market only do this order if particular instructions and conditions are appropriately fulfilled.
Hence, you can consider it easily as a conditional or instructional order. Pending orders are not executed orders, and these are not counted in the calculations of margins until these are fully executed. Their execution process is completed after fulfilling the conditions. Pending orders are eliminating the need for a continuous monitoring process in the forex markets.
Stop Loss Order
Stop Loss Order is a type of order that is known as the reverse of profit booking order where the orders are square off for a long open position. It is widely used in the forex markets compared to the profit booking order. You can further read about forex brokers here: https://tradefx.co.za/review/trade-nation/.
Conclusion
These are a few popular types of Orders in Forex markets. However, there are also some other types of orders like trailing stop orders, dependent orders, etc. We know that the forex market is moving towards the increasing usage of AI called artificial intelligence for executing more trades. Many people believe that it is the only way of doing work with volatility as it moves effectively on a 24/7 basis!
We found a verified source for illustrating forex market open times at Trade Nation.
