Types of Forex Orders

Question 1

The term “order” refers to?

Answer 1

How you will enter or exit a trade

Question 2

A market order is an order to?

Answer 2

buy or sell at the best available price

Question 3

For example, the bid price for EUR/USD is currently at 1.2140 and the ask price is at 1.2142. If you wanted to buy EUR/USD at market, then it would be sold to you at the price of?

Answer 3

1.2142.

Question 4

A limit entry is an order placed to either?

Answer 4

buy below the market or sell above the market at a certain price.

Question 5

A stop entry order is an order placed to buy?

Answer 5

above the market or sell below the market at a certain price.

Question 6

A stop loss order is a type of order linked to a trade for the purpose of?

Answer 6

preventing additional losses if the price goes against you.

Question 7

A stop loss order remains in effect until?

Answer 7

the position is liquidated or you cancel the stop loss order.

Question 8

A trailing stop is a type of stop loss order attached to a trade that?

Answer 8

moves as the price fluctuates.

Question 9

With a trailing stop of 20 pips, if USD/JPY hits 90.40

Answer 9

then your stop would move to 90.60 (or lock in 20 pips profit).