How To Place Orders With Singapore Forex Brokers

Posted by admin 17/02/2014 Comments are off 1289 views

Placing Orders in Singapore Forex Brokers

This article looks at the different order types you can place with Singapore forex brokers.

It is extremely important that you know how to properly place order with Singapore forex brokers.  The orders should be placed in the manner you intend trading.  You need to know your entry and your exit points.

Singapore Forex Brokers Order Types

Market Order

A market order is the most common type placed.  It is used to execute an order at the current market price.  This type of order is used to either enter a new trade or to leave a position.

Stop Order

Stop orders become market orders once your specified price has been attained.  You can use it to enter a new trade or to leave a trade.  A buy-stop order is placed if you wish to purchase a currency pair at a specified market price which would be higher than the current market price.  A sell-stop order is entered if you wish to dispose of your currency pair at a specified market price which is below the market price as it currently stands.

You can use a stop order when you intend trading breakouts.  If you were trading the USD/CHF and the pair is moving to a resistance level.  If your analysis indicates that once it goes above the resistance, the trend would be for it to climb further, you can place a stop-buy order.  This order would be placed a few pips above that resistance level to allow you to trade the possible breakout on the upside.  Once that price reaches or goes beyond your specified price, you can go long with your position.

You can make use of an entry stop order if you wished to trade on the breakout downside.  In this case you would place a stop-sell order a few pips under the support level.  When your specified price is reached, you can go short on that position.

Limit Order

Limit orders are placed if you are willing to either enter or exit an open position at a specified price.  Your order will only be completed if the market price reaches the specified price or better.  A limit-buy order is an order to purchase the pair at the market price as soon as your specified price has been reached or it is lower than the current market price.  A Limit-sell order is an order to dispose of your pair at the price on the market once that your specified price has been reached and it is above the current market price.

Before you place a trade, you should have a plan as to the level of profit you hope to reach if the trade remains in your favour.  Limit orders allow you to get out of the market at your predetermined profit level.  If you wish to go long with your position, you would make use of the limit-sell order to place a profit point.  If you want to go short with your position, you would set a limit-buy order for your profit goal.  This type of order can only be used with prices in your profit zone.

It is vital that you know exactly how to set the different types of orders.  Your trading plan should specify your limits and you should stick to it.




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