Types of Orders
Market Orders:
A market order is
an order to buy or sell at the current exchange rate quotation. If
unable to fill the order at the specified rate, you may receive a new
price representing the current market rate.
Market orders are usually filled in less than 10 seconds depending on
market conditions. During heavier market conditions, market orders are
typically processed in less than thirty seconds. Clients often do not
wait more than thirty seconds in order to have their trade confirmed or
to receive a market has moved message.
Entry
Orders:
An entry order is an order that is executed when a particular price
level is reached and/or broken. These orders will 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 triggered when the exchange rate touches 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 Order:
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. The
execution of a stop-loss order may involve a degree of slippage,
depending on market conditions.
Limit Order:
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
stop-loss order placed on a Buy position is a stop entry order to Sell
that position. A stop-loss order remains in effect until the position is
liquidated or the client cancels the stop-loss order. |
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