The broker's role is primarily to serve as an intermediary in the execution of orders between buyers and sellers, however these orders are not always enforced in the same time they are admitted, either because the broker or by the operator, the we will see below. Different types of orders and how to profit from them
Market orders
Orders are simple input operation, as you know it is an order to buy or sell a currency in relation to its counterpart, usually buy / sell 100,000 units a lot of the base currency (which is at the left). Each pip movement equals 10 units of the counterparty (which appears on the right), for mini accounts even though the proportion remains the volume is reduced to one tenth of the above, in general terms of such orders are executed at the price displayed in special cases but this may vary as we shall see later.
Limit Orders
Mainly as a legacy of the electronic trading of stocks, the Forex market introduced types of orders that will limit the losses as well as establishing a profit target, as is the case of limit orders.
Thus the limit order simply seeking execute the basic principle of buying cheap to sell dear, or vice versa which has been particularly important in a market that operates 24 hours a day on the Forex. So that many times the price searched is reached at different hours of operation to start it, which is quite likely operations in the medium and long term, by deduction, a limit order to buy one will be a sale at a higher price and for sale at a purchase price.
Stop Loss Orders
Are opposed to the limit order, seeking to fulfill the philosophy of limiting the losses as its name indicates, however its implementation is similar to limit orders, in this case, an order to stop a sale is a purchase worth more and similarly high for a purchase at a sale a lower value.
Trailing Stops
Try to be a dynamic combination of the two orders presented above is, its start as a Stop Loss works simple but as the market moves in favor of the position of the stop moves to protect the gain is merely say the losses and let profits run.
This being one of the topics that cause more concern on the issue of warrants will see a simple example:
It runs a purchase order on EUR / USD at 1.3000 with a trailing stop of 10 pips, i.e. the stop starts at 1.2990, if the market touches this point before reaching 1.3010, the position was closed with 10 pips loss. However, if the price reaches 1.3010 stop is automatically moved to 1.3000, which is now in the worst case was closed position in BE, but if the price moves to 1.3020 stop is automatically moved to 1.3010 and now in the worst case, close the position with 10 pips gain and so on.
If Then order (and if)
As its name suggests is where orders are placed a conditional order of market entry and if and only if such order is executed the other order came to expect to be executed, is especially useful for those operating hoping breaks.
OCO Order (One Cancel the Other, One Cancels Other)
Similar to the previous order is a mixed but unlike it, either can be executed and if so, the other will be canceled immediately, it's most common use is to establish and Stop Limit simultaneously an order already executed.
If Then OCO Orders
Are the combination of the two types of previous orders, are used to set a different price to a market entry point, a point of departure and a point of stop.
Strangle
We enter one of the topics that may be of more interest for a little more experienced operators; this is one of the legacies of the operation in bond and stock markets called Strangle.
It is common that this technique is called literature and is in the Forex market as Straddling but is not technically feasible in the Forex. The strangle is to place two orders to certain market pips away from current price, a sale at a lower price and a market to buy a higher price, this strategy became very popular a few years ago to operate as the NFP news today. However, its effectiveness has diminished considerably by policies implemented by the brokers and we will see more forward in this session.
Rollovers
The rollovers are intrinsically linked to the carry trade and are an order that are implicit in the operations of more than a day, is basically in a position to close and open simultaneously for other similar value. As operators in fact what we see is simply the purchase price or the sale to change hours of operation (for most brokers at 5 PM NY time) changes for better or worse price. It is depending on which side of the carry trade we are (whether we side with the higher rate will be best price and if we are the worst side of it will be worse rate price), even if I wanted to include automatic orders to make an integral part of the operation of accounts.
