Entry Orders
Entry orders allow a trader to enter the market at a price other than what the market is currently offering. Instead of a market order, meaning you want to enter at the current market price, an entry order represents an effort to get executed at a different price and at a later time.
Traders use entry orders for many purposes. One instance in which traders favor entry orders is when the market is ranging. For the purpose of explanation, let\'s say the GBP/USD is moving in a 30 pip range and that you believe it will again retrace once it reaches the peak of the range. Because you work in addition to trading the Forex market, you cannot watch the screen and hope to automate the account. In this instance, you would utilize an entry order. By placing an short entry order near the top of the range, you are instructing the system to enter you into a short position at price X. If the market hits that price, your trade will be executed. If the market never reaches your price, the order will remain unfilled until it is filled or you remove the order. CAUTION: make sure to consider placing stops on entry orders. In our example, if you had been filled, but the market continued to rise instead of retracing as you had predicted, you would have had significant losses.
Executing an entry order with FX Trading
Goal: A short order above current market price
Right click the bid price [left hand column] of the currency pair you\'re seeking to trade in the dealing rates. Select "Entry Limit." Enter the desired price.
Goal: A long order above current market price
Right click the ask price [right hand column] of the currency pair you\'re seeking to trade in the dealing rates. Select "Entry Stop." Enter the desired price.
Goal: A short order below current market price
Right click the bid price [left hand column] of the currency pair you\'re seeking to trade in the dealing rates. Select "Entry Stop." Enter the desired price.
Goal: A long order below current market price
Right click the ask price [right hand column] of the currency pair you\'re seeking to trade in the dealing rates. Select "Entry Limit." Enter the desired price.
If you have any questions with regard to entry orders or executing an entry order on our platform, Contact Us or speak to a representative via the online chat to the left.
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